The generally favorable partnership federal income tax rules are a common reason for choosing to operate as a partnership with multiple partners instead of as a corporation with multiple shareholders. The most important partnership tax rules can be summarized as follows: Pass-through taxation. You can deduct partnership losses (within limits). You may be eligible …
Partnership with Multiple Partners: Tax Pros and Cons Read More »
How an LLC can elect to be taxed like a C-Corporation with the IRS: The IRS doesn’t have a specific tax classification for LLCs. Instead, they look at how many owners – (called Members) – an LLC has to determine how the LLC will be treated for federal income tax purposes. An LLC with …
Along with other annual business compliance responsibilities, corporations (and sometimes LLCs) must hold various meetings and record meeting minutes from those meetings. With the new year ahead, new entrepreneurs and existing business owners need to make sure they understand their responsibility to hold annual meetings and draft meeting minutes. Meetings that Require Keeping Minutes Corporate …
There are a number of similarities between a Limited Partnership vs Limited Liability Company, such as flexibility and pass-through tax treatment. There are also some distinct differences to consider when comparing Limited Partnership(LP) vs Limited Liability Company(LLC) and choosing which would be the best in your circumstance: structure, personal liability, and reputation. Limited Partnership(LP) …
Limited Partnership vs Limited Liability Company: What’s the Difference? Read More »
A registered agent is an individual or entity appointed by a Limited Liability Company, S Corporation, C Corporation, or other legal business entity to accept legal documents, government correspondence, and compliance paperwork on its behalf. Other names for a include statutory agent, agent for service of process, and resident agent. Registered agents are critical for …
If you’ve formed a limited liability company (LLC) or corporation to operate your business or are thinking about doing so, you need to know about the Corporate Transparency Act(CTA). Enacted in January 2021, CTA will end business owners’ ability to form business entities without revealing their identities to the government. The new law intends to …
CTA: Congress Passed It, What Is It & What Does It Mean To Me? Read More »
Do You Need a Corporate Veil? What Is the “Corporate Veil”? When a company is formed as a Limited Liability Company (LLC) or corporation, it is regarded as its own legal entity. Therefore, the business—rather than its owners—is held accountable for its debts and legal responsibilities. “Corporate veil” (also called a “corporate shield”) is a …
Should You Operate Your Business as a Partnership (or an LLC Taxed as a Partnership)? Changes included in the Tax Cuts and Jobs Act (TCJA) force you and other small-business owners to reconsider whether a new venture should be conducted as a pass-through entity or as a C corporation. Pass-through entities include a partnership and …
Partnership – Should You Operate Your Business as One Read More »
Business Compliance Requirements by Entity Type Business structure affects the filings, reports, and other formalities a company must carry out to legally conduct business. Every state has its own Compliance Requirements, and counties and local municipalities may have regulations, as well. To give you a general idea of what different business structures have to do …
Compliance Requirements- By Business Entity Type Read More »
Ready to Be a Registered Agent? Ask Yourself These 3 Questions Most states require that small businesses designate a registered agent in their state of formation. Registered agents (also referred to as an RA) act as the state’s means to communicate with a corporation or LLC. They accept official documents on behalf of your business, …
Registered Agent- 3 Questions to Make Sure You Are Capable Read More »