Thursday, January 30, 2014

Ever Considered an LLC?

There are no hard and fast rules as to what is the best way to structure a business, and naturally, the decision will be based on your own individual circumstances. But there are certain pros and cons to each business structure that you should be aware of, as there are certain rules that regulate the way business may be conducted in the U. S.

Strategy - Consider converting your business to a Limited Liability Company to avoid personal exposure to business liability.

Sole Proprietorship and Partnerships do not offer owner(s) protection from business debts, whereas Corporations do.

For this reason alone, you should consider forming your business entity as a Corporation - to provide the owner(s) "1st Level" protection from business creditors. Of course, this only applies to debt that has not been "personally guaranteed" by any business owners.

This same level of protection can also be accomplished, without incorporation, using a "Limited Liability Company" (LLC). A "Limited Liability Company" is taxed as a partnership form of organization-using a Form 1065, (or as a corporation, using a Corporate Tax form) and issuing K-l (Form 1065) Schedules to each owner.

This is the newest method of structuring a business and is a fairly recent innovation. An LLC is like a Sole Proprietorship; however it provides the same protection from liabilities as that of a "C" or "S" corporation. In fact, this structure allows you to elect to be treated as a corporation without having to deal with the formalities of a corporation.

If there is only one owner, you can file and be taxed as a Sole Proprietorship. If there are two or more owners, you will be taxed as a partnership.

Here's why you may want to consider using the LLC form of business organization.

Advantages

· Limits liability just like a regular corporation.

· One person can own the LLC, which eliminates the need to file a separate tax return.

· Other entities such as a C Corp, trust, or partnership can own an LLC.

· Does not require the formal meetings and documentation of a "C" or "S" corporation.

· Tax filing and other paper work is simple and inexpensive.

· You can claim all the same tax advantages of Sole Proprietorship and partnerships.You don't have to hold shareholder meetings or keep meeting notes.

· Management control need not be proportional to ownership.

The advantages of a "Limited Liability Company" over an "S" Corporation form of business organization are as follows:

· An "LLC" is not limited to 100 owners;

· An "LLC" allows foreign individuals to be owners, and

· An "LLC" cannot have its status revoked if it engages in real estate activities.

Disadvantages

· The major disadvantage of an LLC is that it does not provide a FICA tax break like an "S Corporation" does (except in the case of hiring a spouse or children... their salary is not subject to FICA taxes if they are under the age 18).

· The laws which govern an LLC are not uniformly written among the states. Because there is no uniformity between states with regard to the tax treatment of an "LLC", there may exist some potential for exposure to additional liability at your local and/or state level.

Under a "Limited Liability Company" its owners are not called owners or partners, but rather are referred to as "members." Each member enjoys an upper limit on their own personal liability potential in an amount equal to the dollars they personally invested in the "LLC"-just like the liability protection afforded "S" Corporation shareholders.

One final thought on multiple ownerships within partnerships, LLC's or corporations. What happens if you and one other owner in your business do not get along? Bad relationships have resulted in some of the most expensive and protracted legal battles around. This kind of business contention is as bad as a divorce.

Thus, take the following advice:

If you incorporate or structure your business as an LLC and have multiple owners, always set up a "buy-sell" agreement at the launch of your business. This will eliminate a lot of problems you could encounter later. Think of "buy-sell" arrangements as some sort of business prenuptial agreement.

As I have already noted, the way you formally structure your business can protect you from liabilities and save you thousands of tax dollars depending on your personal circumstances. I strongly recommend that you seek out the professional help of your accountant or attorney in order to sort out the issues with each of these entities.
http://Bradgillies.com
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Wednesday, January 29, 2014

Monday, January 27, 2014

Business Advice : How to Form an LLC



In order to form an LLC, an individual must file articles of organization with the secretary of state. Form an LLC with tips from a certified adviser on small business in this free instructional video on starting a business.

Sunday, January 26, 2014

An Overview on LLC Taxation

Calculating and paying for taxes is never easy. It's especially tricky if you are a member of a limited liability company, since this business structure allows for a wide range of tax treatment options. Lucky for you, there's this guide to help you navigate the murky waters of LLC taxation.

General Rules

How your LLC will be taxed depends on whether the IRS views your company as a sole proprietorship, a partnership, an S corporation, or a C corporation. The IRS may tax the individual members, the LLC as a whole, or both. Remember that the LLC is legally considered a different business entity from the members comprising it. Understanding this distinction will make the concept of LLC taxation less confusing.

Sole Proprietorship

LLC taxation for one-member companies is straightforward: the lone owner pays the LLC's taxes based on the company's net income. There is no need to file separate returns for the owner and the company.You can choose to have your company treated as a corporation-provided that you also allow it to be taxed as such.

Partnerships/Multi-Owner LLCs

Multi-owner LLCs file two separate tax returns: the 1065 partnership tax return for its business income, and the Schedule SE tax form for the self-employment taxes of each member. Self-employment taxes depend on the agreed profit-loss sharing between the members.

C Corporation

LLC taxation rules for this business structure work like that of a standard corporation. Essentially, the aggregate profits of the C corporation are taxed according to the prevailing corporate tax rate, and any profits distributed as dividends among members are taxed according to the dividend rate. Though the members don't need to file individual returns, they still need to pay payroll taxes in behalf of their employees.

S Corporation

The LLC taxation system for S corps is unusual. A return is filed in behalf of the LLC (i.e. Form 1120S), but the company's profits aren't taxed as a whole. Instead, tax money comes straight out of the individual members' pockets, again according to their operating agreement. The members declare these taxes via individual returns.

The LLC taxation system is only one of several considerations you have to bear in mind when choosing an LLC structure. All of these have their pros and cons, and it's important that you do your research on which structure is in the best interest of your company. Always take time to consult the experts, like your lawyer, accountant, or even registered agent.

If you are looking for information on Tennessee LLC taxation, click on the link. Or you can visit http://www.ezonlinefiling.com/.
Article Source: http://EzineArticles.com/?expert=Pete_Morgan

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Saturday, January 25, 2014

Friday, January 24, 2014

Wills Vs. Trusts: Suze Orman



Finance expert Suze Orman discusses the differences between a will and a trust and why both are important to have.

Thursday, January 23, 2014

Tuesday, January 21, 2014

Incorporation - Is It Right For My Business?

The process to form your incorporation is relatively easy, and the legal concept of incorporation is recognized all over the world. A Certificate of Incorporation is the evidence of incorporation and registration of the legal entity with the authorities of a particular state or an offshore jurisdiction. A primary advantage of incorporation is the limited liability the corporate entity affords its shareholders, and in many cases, favorable tax treatment. For anyone starting up his or her own business, an understanding of business incorporation is a must before taking that step.

Incorporation is a system of registration which gives a business certain legal advantages in return for accepting specific legal responsibilities and is an option that many businesses each year decide to take advantage of. However, prior to filing with the state, you should have your attorney and accountant advise you as to whether or not incorporation is the right step for your business, both from a legal standpoint and from a tax perspective. If the corporation is a closely held corporation and does business primarily within a single state, local incorporation is usually preferable. Incorporation is a state process, and therefore the process and specific benefits may differ from state to state, as well as registration costs, resident agent fees, etc.

What type of incorporation is best for my business? A "C" Corporation, an "S" Corporation or a Limited Liability Company (LLC)? In addition to those choices, you then need to decide where to incorporate. Not only does each state offer certain benefits, but costs to file and maintain the corporate status are different. Additionally, if your business purpose is rather simple and straight forward, you may be able to use an online incorporation service to incorporate, at substantial savings. Remember, when in doubt, or if any questions or issues need addressed, seek professional advice...it usually is cheaper in the long run!

There are certain states that offer important incorporation benefits to the directors and shareholders. You need to make a comparison of these benefits, as well as the filing costs, to determine if incorporation in that state is warranted. Another consideration for incorporation in a state other than where your business is located, is that you may be required to register as a foreign corporation in your resident state. This will usually entail annual filing fees equal to or greater than that for a domestic corporation. Again, prepare a checklist and weigh all benefits as well as additional costs, etc. before the incorporation process begins. Rather than incorporating in another state, you may also benefit by an offshore incorporation. Check it out carefully.

Gust A. Lenglet is an accomplished author and financial advisor and has written many articles in the fields of investments, law, education, as well as taxation. He is President and CEO of HBS Financial Group, Ltd. and offers online tax filing as well as timely advice on tax planning and investments.
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Monday, January 20, 2014

Pros and Cons to Consider When You Form a Limited Liability Company

A Limited Liability Company (LLC) is one of the newest types of business organization structure that combines the characteristics of other business types. It is often referred to as the hybrid of sole proprietorship, partnership, and corporation. Due to its newness, there may be various issues that can arise when businesses in form a LLC.

When a business decides to form a LLC, its pros and cons should be considered first. This is to ensure that the owner understand what the implications this move brings. The organizational structure of the company as well as its operational processes would definitely be affected by this choice of business type.

Consider these factors when putting up a LLC:

Pros:

A LLC is very famous for its flexibility. With this type of structure, one member or more can establish the business easily. It can be formed online, at the office, or at home. Also, this allows full management or control of the business with an operating agreement made by the owner and other members.The free control over the operating agreement enables the company to establish its own rules and protective provisions for all its members.

Another benefit when a business chooses to form a LLC is the informal or less complicated business process. Unlike a corporation, a LLC can operate in an informal manner. This spares the members from attending annual meetings. Also, certain documentation are not strictly required. However, it is still advisable to keep records of business transactions for audit purposes or for any other future need.

Protection of assets is one of the most important advantages of a LLC. In this type of business, the owners of the company are not individually liable for any of the company's financial obligations. Passed through taxation is also automatic and therefore lessens the amount of taxes paid by the company.

Cons:

Businesses that opt to form LLC may also face some limitations. Even if this business type is very flexible, there are also restrictions to its membership and operation. First, if the LLC reaches more than 20 members, there is a definite need for a manager. A manager is needed to oversee the progress of the business and to keep it organized. Hiring a manager for the LLC presents additional expenses to the business. Also, the LLC may be dissolved if one member quits. However, there are provisions in the state laws which can address this problem.

The LLC can also restrict the flow of the business profits and stocks. The LLC is not authorized to split the overall profit and loss to its members. Aside from that, raising capital in a limited liability business is difficult. This limitation results in the investors' preference for a corporation instead of a LLC. Additionally, the members cannot sell and issue stock certificates.

Lastly, the LLC may pose some fee and taxation issues. This involves payment of taxes for the limited liability benefit of a LLC business. Also, the annual fee of LLC in some states is higher compared to other structures of business.

If you are looking for information on Tennessee limited liability company, click on the link. Or you can visit http://www.ezonlinefiling.com/.
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Sunday, January 19, 2014

Saturday, January 18, 2014

Friday, January 17, 2014

Thursday, January 16, 2014

Advantages of an LLC | What is an LLC?



Are you wondering what the advantages of an LLC are? Wondering what is an LLC, an S-Corp, Partnership or Sole Proprietorship? Learn why you might consider the advantages of an LLC as your choice for choosing the entity of your company structure.

Wednesday, January 15, 2014

Estate Planning : What Is a Probate?



A major goal of estate planning is to avoid probate, when a court must remove one name from a legal deed and add another.

Tuesday, January 14, 2014

Things to Keep in Mind When Running an LLC Business

Running an LLC business is not a bed of roses. You have to stay on top of things. Aside from hands-on management, you also have to look outward into what your customers want. You have to be proactive in the way your products are designed or formulated. This is the only way through which you can stay in business. In managing your operations, keep the following in mind:

- Be committed

An LLC business is bound to fail if its owner is not committed enough to its business goals. This is one of the most common reasons why people with LLC businesses close shop. Successful entrepreneurs are committed to their business goals and have a clear plan on how they can make their goals possible.

- Be frugal

Having your own business is not an excuse to splurge on yourself because you expect a sizeable profit at the end of the month. That is still tentative. Revenues earned by an LLC business should be managed and spent wisely. Be frugal in your spending and limit your allocation only to those matters that are deemed important in running the company.

- Set goals

You cannot simply set-up your LLC business without having a goal in mind. This should be as detailed as how you envision your company to be in the next five years. Or perhaps you could set a target revenue within a reasonable period of time. You can measure your performance based on how near or far you are from achieving your goal. The way you spend your budget will have to depend on what your goals are. When you have a clear goal in mind, you are less likely to splurge your revenues as you earn them. Every expense item or spending requirement should be aligned with your business goals.

- Learn to manage risks

Being in business is risky, not just but everywhere at any time of the year. The only way to survive in the business world is to learn to manage these risks. Identifying and analyzing risks beforehand is a good exercise to help you prepare for these risks. Effective risk management comes with foresight and early preparation. When contingency plans are in place, these risks can become more manageable.

While running an LLC business is not exactly that easy, having the right mindset and being prepared for any eventualities allow business owners to be on their feet so that they can spot opportunities and manage the risks more effectively.

If you are looking for information on LLC business in Tennessee, click on the link. Or you can visit http://www.ezonlinefiling.com/.
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Monday, January 13, 2014

7 Important Reasons to Form a Corporation or LLC for Your Business

Are you operating your business as a real business or as a hobby? It's time to make your business OFFICIAL before the summer push for business!

Let me ask you two important questions:

  1. Are you operating your business under your own name, a DBA or fictitious firm name, basically as a sole proprietorship or maybe as a general partnership? AND/OR
  2. Are you or your family at risk because of business or personal assets that are unprotected from unexpected losses or legal issues?

If you answered YES to either question please read on for important news about why NOW is the time to form an corporation or LLC for your business.

  1. Make it Official. Operating as a sole proprietorship or general partnership sends a message that you are still "testing" your business, or that you're not sure you'll really make it. Perhaps your accountant told you that incorporating is an unnecessary expense or that it won't help you save on taxes due to an expectation of low profits. This is the WORST marketing message you can send when you want to attract new clients and partners to your business, who want assurance that you're about your business and here to stay.

  2. The Law of Attraction. You get what you focus on. Testing, hoping and "seeing if things work out or not" BEFORE you decide to step-up and make your business official by incorporating broadcasts a clear message to the universe that you're not really serious about your business or committed to a positive outcome. The Law of Attraction states that the universe returns not what you wish for, but what you program into your deepest belief system through your dominant thoughts, actions and feelings. Making your business official and really stepping up says, "I am ready to receive!".

  3. Limited Personal Liability. You may be thinking "I already lost everything in the market collapse from 2008" and still recovering. If you're one of the few that managed to survive and grow your assets since then, but are still holding them in your own name, you're playing a VERY RISKY game (similar to those with assets in unstable European banks). Even if you don't have any assets right now, a lawsuit or judgment will destroy any credit you are looking to build in the future PLUS you may be looking over your shoulder for years waiting for someone to come after you when you finally do start to turn things around. That's no way to live your life. One lawsuit from an unprotected business can ruin your chances of getting a personal auto loan or refinancing your home. Good people who "play by the rules" can still be sued for the most unexpected reasons. You may be thinking "my business insurance will help me out" but are you really covered? Even if your business is never sued, what if you're unable to pay a vendor and they come after you? Do you want to be personally liable? Put a halt to greedy people looking to take what you have worked for! This is the best time to form an LLC or corporation to limit your personal liability.

  4. Reduce Your Taxes. The bottom line is that operating as a sole proprietorship will cost you the most in employment taxes (up to 15.3% on earned income up to $113,700 in 2013). That means that your income will be taxed as the HIGHEST possible TAX RATE as a sole proprietorship. By the way, filing a Schedule C (the form filed for earned income from a sole proprietorship) also means that your business is among those MOST LIKELY TO BE AUDITED. Why? The IRS has a $300 BILLION tax gap and they believe the biggest tax cheats are the little business owner like you. Why? Their stats show them that sole proprietorship are MOST likely to UNDER report their income and OVER report their expenses (two big no-no's with the IRS). Operating as an S corporation or LLC taxed as an S corporation in many situations is a much better approach for two reasons. You will have part of your profits as distributions which are NOT subject to the 15.3% employment taxes AND move that profit to schedule E, not schedule C which is more likely to be audited!

  5. Access More Funding Options. Operating as a sole proprietorship or general partnership limits you when it comes to funding options. You are also DAMAGING YOUR PERSONAL CREDIT SCORE by operating this way. How do you finance your business as a sole proprietorship? You use your PERSONAL CREDIT cards which will drive up your revolving debt which will in turn DRIVE DOWN your personal credit score! When you form a corporation or an LLC you will SEPARATE your PERSONAL and BUSINESS CREDIT. Yes, any type of cash funding with a personal guarantee will come into play, but that DEBT does NOT show up in the personal credit bureau which is HUGE for future funding! As you form a new LLC or corporation NCP will help (if you choose) to build your business credit scores quickly and get your business in a position to secure funding to grow. But the first step is to form a separate legal entity.

  6. Simply Your Life. Yes, in fact operating as a sole proprietorship will complicate your life, not the opposite. Separating your business and personal life will make it much easier for you to navigate both from a financial and legal point of view. Now you will have each in its own compartment where it belongs to protect your overall success.

  7. Asset Protection. Forming an LLC for your safe assets like investments (those outside a retirement plan) will help you sleep better at night knowing you don't have all your "eggs" in one basket. If you are using a LIVING TRUST to protect your assets that will NOT work and everything in your trust may be vulnerable. Do you own other businesses that really should be operating through a separate bank account in a separate entity? Do you own real estate in your own name that may be sending a message that you are rich and have assets worth taking? Have you been in business for years or are you operating more than one business in one entity? Are you doing some business with a new partner and making the big mistake of running that revenue through your current business? Avoid these costly mistakes and form a separate company for that separate business.

Do you need support in forming a corporation or LLC? Not sure what entity or state is best? Call Nevada Corporate Planners, Inc. at 1-888-627-7007, the company I founded. We incorporate in all 50 states and have amazing support and turn key packages to help you also with building business credit and helping keep the IRS off your back!
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Sunday, January 12, 2014

Saturday, January 11, 2014

Friday, January 10, 2014

How to Choose an LLC Registered Agent

It is a must for your LLC to appoint a registered agent. That is because this person is responsible for sending and receiving documents on behalf of your company. And like any person you want to work with during the course of your business, you must choose your agent carefully.

Consider Your Capabilities and Resources

You can be your own LLC registered agent, but it's not advisable unless processing LLC papers is your specialty. Also, avoid choosing agents on the sole basis of fees; as the old saying goes, you get what you pay for. Don't forget to consult with the other LLC members during your search.

Gather Recommendations

Don't know where to start looking? Use your business network and ask for feedback from others who have experience hiring a LLC registered agent. Narrow down your recommendations to those who look like they suit your purposes. You should have three to five prospects on your "to interview" list by the time you're done with this step.

Visit your Agent's Physical Office

LLC registered agents who are worth their salt should have a website where you can learn everything there is to know about them. If you have spare time, though, it wouldn't hurt to pay your prospect a visit. That way, you'll get an idea how your agent operates based on the general "feel" of their office. For example, an agent with a messy, disorganized table is likely to treat business transactions the same way as well.

Ask Questions

Quiz your prospective agent on the process of organizing LLCs. A good one must be able to provide satisfactory answers regarding the theoretical and practical aspects of LLCs. Keep in mind that you'll never know when you'll need your agent's services, so inquire about operating hours and contact information as well.

Make Your Decision

All registered agents have their respective pros and cons. It's up to you to decide what strengths you need from your agent, and what weaknesses you can put up with. You can change your agent if you wish, but you'll have to contend with additional paperwork and fees.

Search for an agent the way employers screen employees: Let the right people know that you're searching, analyze your prospects carefully, and narrow your choices down to those who can gel with your LLC's culture. The steps outlined above are applicable not only for LLC registered agents, but also for other professionals you'll need aboard your boat too.

If you are looking for information on Tennessee LLC registered agent, click on the link. Or you can visithttp://www.ezonlinefiling.com/.
Article Source: http://EzineArticles.com/?expert=Pete_Morgan 

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Wednesday, January 8, 2014

What Is Health Care Power of Attorney?



A health care power of attorney or a health care proxy is a document that designates a person or persons you name and authorizes that person to make health care decisions for you -- but only in circumstances when you can't make the decisions for yourself.

Tuesday, January 7, 2014

What Is a Living Will?



A living will is the name given to a document in which you can set out the nature and extent of the treatment you would like to receive if circumstances ever arise in which you can't communicate, perhaps because of a stoke, or coma. In your living will you can express a desire for extensive and heroic treatment to keep you alive, no matter what, regardless of the circumstances.

Monday, January 6, 2014

Estate and Retirement Planning - How Can My Estate Avoid Probate?

If you are a retiree, you likely have heard many claims made about probate problems. The word itself may even fill you with dread. If you are planning your estate, there are some things you should consider concerning probate. In this, as in all things, it is important to take a balanced approach. Let's review some of the issues pertaining to probate. Then you can decide if you need to approach your estate planning differently.

What is the purpose of probate?

You have heard this word many times, but may never have considered what it means. In legal terms, probate is the period of time during which a will is proven authentic or valid. The purpose of probate is to distribute an estate according to the decedent's wishes described in his or her will. Typically, the first step of probate is to use the person's probate assets and property to pay all debts. After that, any remaining assets and property are distributed to persons named in the will. There may be costs associated with the probate process.

Probate ensures that your wishes for the distribution of your estate are carried out upon your death. Probate is a public process. If your estate is of any size, your heirs could suddenly have new friends trying to advise them on how to manage their newly inherited assets.
People often assume all assets are subject to probate, which raises the following question.

Are all assets subject to probate?

No. Some assets are excluded from probate. An example would be assets that are held in joint ownership with rights of survivorship, such as your personal home. Other assets not subject to probate are those governed by a beneficiary designation. This would include assets such as your 401(k), IRAs, life insurance policies, and annuities. Additionally, assets held in a trust are not subject to probate. If the majority of your estate assets are held in accounts of this type, you may not have that much to be concerned about.

What about my brokerage and bank accounts?

These types of accounts can be set up to transfer on death (TOD) to a beneficiary. This designation allows you to pass securities and banking accounts directly to another person (your TOD beneficiary) upon your death without having to go through probate. By setting your accounts up this way, the executor or administrator of your estate will not have to take any action to ensure that your accounts transfer to the person you have designated. The TOD beneficiaries will have to take steps to retitle the accounts in their name, but this is not a very cumbersome process.

As you can see, probate may not be as bad as you have heard. There are many things to consider during the estate planning process.  

You should talk to an estate planning attorney who can advise you about your situation.
Radon Stancil is a Certified Financial Planner™, the gold standard among financial planners. For well over a decade, he has helped people create personalized roadmaps to financial retirement success. As an author and a financial column writer, he enjoys simply and clearly explaining to others the financial tools that can offer the greatest benefits. Radon believes there are no cookie-cutter approaches to financial planning. His specialty is helping each individual create a retirement plan that is as unique as they are. His office is located at 4101 Lake Boone Trail, Suite 122, Raleigh NC. You can call him at 919-787-8866 or visit his website at http://www.financialplanstrategies.com
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Sunday, January 5, 2014

LLC Vs S Corp

If you're just starting a business or you're ready to take your business to the next level, you have a lot of decisions to make, and one of the most important decisions you'll face is how to structure your business for legal protection and taxation. For many small businesses, the two most popular types of business entities are the LLC and the Subchapter S Corporation, or S Corp. In the LLC vs S Corp debate, there are a lot of factors to consider when you're considering which is best for you and your business. Here are a few things to consider:

LLC vs S Corp

LLC Pros:

* An LLC is relatively easy to maintain. LLCs require fewer forms than S Corps and taxes only need to be filed once a year.

* Formal meetings are not required, which means there's also no need to keep minutes.

* Start-up costs are lower than those associated with an S Corp.

* LLC members are not bound by profit-sharing regulations -- they decide how profits (and losses) are distributed.
LLC Cons:

* If a member declared bankruptcy or dies, the LLC will be dissolved and you will have to reform your LLC.

* For tax purposes, owners are considered self-employed, which means they have to pay roughly 15% in self-employment taxes on the company's entire net income.

S Corp Pros:

* S Corps offer considerably greater tax savings than LLCs; rather than paying a self-employment tax, only the wages of the business' employees are subject to employment tax. The rest of the company's profits are paid out as a distribution, which is subject to a much lower tax. (However, when S Corp owners pay themselves low salaries in order to receive larger distributions, the IRS may reclassify the distribution as wages.)

* S Corps are considered as being independent of their owners, which means if an owner dies, retires or sells their shares, the S Corp will maintain its status.

S Corp Cons:

* S Corps require significantly more paperwork and recordkeeping than LLCs; regular meetings must be held, minutes must be kept and bylaws must be established.

* S Corps have a much more complicated taxing procedure, and many more tax forms are required. What's more, forms must be submitted throughout the year, not just on April 15.

* Not all states recognize S Corps, and the way an S Corp is treated can vary considerably among states, so spend time learning how an S Corp is treated in your state.

Your business is your livelihood, and if you don't have the right legal and tax structure, you could be leaving yourself open for considerable loss. Use this article as a jumping-off point and then seek the advice of a good attorney who can help you decide whether an LLC or S Corp is better for your business' needs.

MyReviewsNow.net offers information regarding forming an llc. For more on corporate formation, please visit us at MyReviewsNow.net.
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Saturday, January 4, 2014

LLC FAQs - What Is an LLC?

When in the process of creating a new company, the business organizers have several options to choose from. The decision will impact tax status, liability and how the profits are shared. Although the options depend on the type of business that is being formed, owners can choose from corporation, sole proprietorship, partnership or the relatively new limited liability company (LLC).

The LLC is a flexible option for organizing the owners of a company. The LLC partners are called associates. Individuals, partnerships or any other business entity can all be associates in an LLC. The main benefit for choosing this method is that all owners are protected from any losses that the LLC might incur. The company is an entity on its own. Associates are not personally responsible for taxes, and if it is sued, only the company itself will bear any responsibility from damages. The main benefit to forming an LLC for the associates is the ease in which it is possible to get the profits. The losses stay on the books of the company.

This form of a company has been on the law books for over 30 years. In 1977, it began in Wyoming, but adoption was slow until Florida followed suit in 1982. It was in the 1990's that forming a company as an LLC really took off and started becoming a popular option that took the place of the other business ownership formats. Since then, it has remained on of the most popular options when creating a new business.

The structure of an LLC is simple. There can be an infinite number of partners in the entity, or there can be just one. Although corporations require bylaws and annual meetings for shareholders, these are not required by an LLC. The only requirement is to record the formation of the company with the secretary of state and pay the proper filing fees.

Among the many benefits of forming an LLC, there are a few disadvantages to associates who choose to structure their company this way. Since each state has its own laws governing LLCs, your company will be treated differently state to state. The earnings of the members of an LLC are also subjected to a self employment tax. This is not the case for corporations where profits are passed on as distributions and are not taxed this way. The final disadvantage only applies in certain states. Some states will apply a tax to an LLC but not to a business formed as a partnership. In those states, it may make more financial sense to form a partnership instead of an LLC.

MyReviewsnow.net offers information regarding forming an LLC. For more on LLC's, please visit our Small Business portal at MyReviewsNow.net
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Friday, January 3, 2014

Estate Planning : Does it Avoid Probate to Have Accounts in Joint Tenancy With Right of Survivorship?



Bank accounts or property in joint tenancy or with right of survivorship avoid probate but also bypass specifications in the will. Learn ways some avoid probate in joint tenancy from an estate planning and probate lawyer in this free video on estate law.

Thursday, January 2, 2014

How to Become Someone's Power of Attorney



Becoming someone's power of attorney allows a person to make financial or legal decisions for another person if that person cannot make their own decisions.

Wednesday, January 1, 2014

Happy New Year!

"May every day of the new year glow with good cheer and happiness for you and your family"