Business Incorporation News
LLC Overview
Date: Mon, Jun 10th, 2013 12:00:00 am | Categories: General Topics Tax Matters Legal Matters
LLCs were first allowed in 1977 under the statutes of the state of Wyoming. After the IRS ruled in 1988 that companies meeting the Wyoming requirements would be taxed as partnerships for federal income tax purposes, other states passed similar legislation. All states currently have statutes allowing businesses to operate as LLCs.
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Business Structure: Know Your Options
Date: Mon, Jun 10th, 2013 12:00:00 am | Categories: General Topics Tax Matters Legal Matters
Before considering the options, plan to get some help from an accountant and a lawyer well-versed in business organizations. Each kind of entity has different advantages and disadvantages, and all except the sole proprietorships involve legal paperwork.
In brief, here are some of the various types of business entities:
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Family Business: Corporation or LLC?
Date: Mon, Jun 10th, 2013 12:00:00 am | Categories: General Topics Tax Matters Legal Matters
Many family-owned businesses historically have been operated through a C corporation, which is a separate taxable entity. The problem with the C corporation is that dividend distributions are not deductible by the corporation, so there is the possibility the corporate earnings could be taxed twice before they reach the owner's hands - at the corporate level and again at the shareholder level at the time dividends are paid. As a flow-through entity for income tax purposes, the LLC reports its income on a separate income tax return but pays no income tax. Instead, each owner of the LLC reports his or her prorata share of the income from the LLC on their separate individual income tax returns. The result of partnership taxation is that the income from the LLC is only taxed once.
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LLC Now More Popular Than Corporations?
Date: Mon, Jun 10th, 2013 12:00:00 am | Categories: General Topics Tax Matters Legal Matters
In recent years, the use of limited liability company has become increasingly popular in the business world as the entity of choice, surpassing the corporation and the partnership. The reasons for its popularity include that it provides asset protection to the owners of the LLC, has income tax advantages over the corporate form of business and is a convenient vehicle for effectuating a succession plan including giving assets to family members.
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Tax Advatages of LLCs
Date: Mon, Jun 10th, 2013 12:00:00 am | Categories: General Topics How To Tax Matters Legal Matters
LLCs, because they may be treated as partnerships, can also take advantage of the benefits of an IRC Section 754 election. When an LLC interest is transferred, the transferee may increase the basis of his or her share of the LLC's property (the inside basis) to fair market value. Similarly, when an LLC makes a distribution of property to a member, the LLC may increase the adjusted basis of its property by the amount of gain recognized by the distributing member.
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Why have LLCs Become So Popular?
Date: Mon, Jun 10th, 2013 12:00:00 am | Categories: General Topics Tax Matters Legal Matters
An LLC can solve some major problems. Until LLCs were allowed, choosing a business arrangement involved difficult trade-offs: Partnerships are simple, and they're generally not taxed, but they can leave you personally vulnerable to business lawsuits and obligations. So most doctors practice in corporations, but those are complex-and surrounded by restrictions and tricky tax rules.
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Limited Liability Company: Is It for You?
Date: Tue, Oct 25th, 2011 12:00:00 am | Categories: General Topics
Small businesses are popping up everywhere. With unemployment rates still on the rise in some areas, many people are choosing to venture off on their own. Opening a business has many benefits, but it also has drawbacks. As a business owner you are financially responsible for many aspects of the business. One way to protect yourself from being personally responsible is to turn your business into a limited liability company.
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Forming a limited liability company is easy and has several advantages.
Date: Tue, Oct 25th, 2011 12:00:00 am | Categories: General Topics How To
Forming an L.L.C. or limited liability company is really not very complex at all. Just be sure to refer to your state laws regarding the formation of an L.L.C. Generally these processes must be completed:
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Online Incorporation Services Make It Easy to Form An LLC Today
Date: Tue, Oct 25th, 2011 12:00:00 am | Categories: General Topics Legal Matters
You have your product. You have your exciting business idea and you and your business partner or partners are ready to unleash it on the world. Then somebody tells you you need a limited liability company and the brakes go on abruptly.
Forming an LLC is an intimidating concept for most people. However, a limited liability company is vital for many ways of doing business.
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Another blow to the jobs market--federal small business lending fund a failure
Date: Tue, Oct 25th, 2011 12:00:00 am | Categories: General Topics Loans and Financing
The Small Business Lending Fund, set up last year with $30 billion by the Treasury department to help banks jumpstart lending, disbursed a only $4 billion, leaving many rejected bankers and small business owners frustrated. The news is all the more frustrating because it comes at a time when small business owners are complaining that they cannot grow or hire because they can't get credit. It had been hoped that the fund would be a boon to small business owners of all kinds, whether long-established or having just been able to form an llc (limited liability company).
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