Can one person be all of the officers?
In a word, yes. Is that always advisable? No, but it’s typical in a very small single-shareholder corporation.
David Herzog Legal
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26Feb 2020
26Feb 2020
What’s an LLC manager?
The term “manager” has a specific meaning with respect to an LLC. The manager in an LLC is somewhat akin to the director in a corporation. The confusing part is that it can also be akin to the CEO or other officers of a corporation as well. Typically, the manager, well, manages the affairs of […]
06Aug 2020
Why shouldn’t I make my LLC managed by all members?
It’s tempting, when you’re starting out, to appoint all of the members as co-managers of the LLC. Y’all are excited and in a kind of honeymoon phase. And if you agree that all members are managers, you don’t have to discuss [read: negotiate] who’s “in charge”. So, two things about that: First, if you can’t […]
26Feb 2020
Can anyone own an interest in an LLC?
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.
26Feb 2020
What’s a Tax ID number?
This is much more critical than some people think. A tax ID number is your corporation or LLC’s separate tax identity. Whether it’s opening a bank account, setting up payroll, or filing a tax return, this number is THE number for all purposes. Here’s how you can get one (good luck to you) or here’s […]
26Feb 2020
How do I get a tax identification number?
You can go to the IRS’s website, and go through their multi-page question and answer pages. Make sure you’re ready with your SS-4, as the IRS may ask for that over the phone if it doesn’t like one of your answers. (PS, the IRS is not in the habit of liking.) Important note: you need some kind […]
06Aug 2020
If I convert my LLC from one state to, say, California, do I need a new Tax ID number for the LLC in California?
Since the LLC is just moving from one state to another, and not changing its structure or tax status, a new Tax ID number shouldn’t be required. The LLC would need a new Tax ID number, for example, if you terminate the LLC in one state and then start a new one in another state […]
27Feb 2020
What’s an assignment?
An assignment is a document used to transfer assets from one entity or owner to another. Click here to see if you need one.
27Feb 2020
What’s a capital contribution?
In its most basic terms, this is the money (or sometimes the assets, like equipment) you put into your business. It differs from a loan in that it doesn’t accrue interest payable to you. If you put money into your corporation or LLC (or partnership), then the return of that money to you as you […]
27Feb 2020
Do I have to make a capital contribution?
No, a capital contribution isn’t necessary. But typically you would, and should, make one. You would because there’s almost no way to start a business without some kind of investment. And you should because if your corporation or LLC is “under-capitalized”, then you could be exposing yourself and fellow shareholders or members to personal liability, […]
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