YES! Of course!! Actually, no. Though “need” is a funny word. An attorney is not required to incorporate an entity. But if you learn nothing else from bouncing around this website, it’s that there may be a great deal of things to consider, traps for the unwary, and housekeeping items that may make or break […]
An assignment is a document used to transfer assets from one entity or owner to another. Click here to see if you need one.
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 […]
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, […]
For a corporation to be an S Corporation, the paperwork to make that effective is due no more than two months and 15 days after the beginning of the tax year the election is to take effect (yes, I copied that from the IRS instructions). If you’re really ahead of the game, then the timing […]
You wish. But no. Congress treats this election as a go-forward business decision, not a look-back election. The good news is that it’s easy to revoke, or even “bust”, the election. But be careful about switching back and forth – as in, things don’t work that way.
You’re going to get different answers, depending on the advisor you ask, and the state you’re in. Generally, though, best practice is yes, and sometimes required. PS – If you’re keeping this a secret from your spouse, then an S Election is not your biggest problem.
Yes. It’s really that simple. Here’s a link to the IRS page that’s chock full of info. PS – Spouses too.
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 […]