And therein lies a major difference between LLCs and S Corporations – because LLCs can be owned by practically anyone or anything, making them very useful for pass-through taxation while being owned by other entities.
No, but thanks for asking a weird question. You’re likely getting confused with some industries, like talent management, that may require you to obtain a license from a particular state agency. The formation of the entity doesn’t trigger automatic licensure, nor does it automatically require you to get a license for your business. Licensure for […]
Sorry, but . . . LOL – no. People do try this, though. The purpose of an LLC, and therefore what it ultimately protects, by law, is to protect its owners (Members) from liability for claims made arising out of the operations of the business in the LLC. If a person obtains a judgment against you […]
Any corporation can be an S Corporation, unless it doesn’t meet certain criteria. For example, an S Corporation cannot be owned by another corporation, with certain very narrow exceptions. And sometimes you don’t want your corporation to be an S Corporation, for example, when you are seeking VC investments.
Whew! A good question with a simple answer. When an LLC is formed with two or more members, it’s automatically taxed as a partnership. That’s it!
First, please take a look at this FAQ. Once you understand why you may want to use a C Corporation, you’ll understand several of the reasons that an S Corporation may not work for you. Next, other downsides include not being able to have more than 100 shareholders, and not being able to have non-individual […]
Short answer: No. Long answer. When you turn one of your employees into a partner, that individual will switch from receiving a W-2 to getting a Schedule K-1. If you want your “partners” to be treated like an employee, then an S Corporation is the preferred approach (after you’ve determined that a C Corporation is […]
“Big” is a relative term. Size isn’t always the only, or even a significant, element to determining whether you should entity-ize your business. If you run a small business, but it’s a high-risk business, like, for example, a liquor store, then the overhead of an LLC or corporation is probably not only a good idea, but […]
Short question . . . long answer. For the most part, the classic answer, which is also correct, is a C Corporation (or an S Corporation) provides limited liability for its owners and management. Either one could provide additional tax benefits. On a less obvious level, having your business in a corporation may provide it […]
@therichbrooks Podcast Ep 82 of #tmap well done; lots of great tips, and was pleased by the call out.
Reminder to Register for my informal roundtable in SF: Entity Choice for Startups and Small Businesses http://t.co/OtFnrOVU
Do you have experience in finding good-fit fiscal sponsorships for fledgling non-profits? Please contact me if you do.
I'm going to a Meetup with Service Providers Focused on Tech http://meetu.ps/ljhH
$1,000,000,000 in debt; anyone want to supplement their DVD collection? http://t.co/W2J9PJi
An extension of time to file your taxes is not an extension of time to pay #taxes.
Companies that 100% own subs doing biz in CA may have to register ParentCo with CA Secretary of State #smallbiz.