Directors . . . direct! They set policy and guide the company with its business and direction. Directors are like the captains of ships; they know where the ship should go, and they tell the officers to make it happen.
In a word, yes. Is that always advisable? No, but it’s typical in a very small single-shareholder corporation.
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 […]
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 […]
That’s the short way to say “registered agent for service of process”, which, I realize, probably still doesn’t answer your question. This is the individual or business that is charged with receiving legal process, i.e., claims from third parties and government agencies against the company. This gives the public someone to serve with legal process, […]
You probably didn’t think to ask this until you saw it was a question. Answer: No. S Corporations are restricted with respect to their ownership, one of the key factors why they can’t always be used. For example, no more than 100 shareholders can own shares in an S Corp, no shareholder can be a […]
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.
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 […]
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 […]
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 […]