Determining the type of legal structure for a new business can be daunting for entrepreneurs and small business owners. Corporations and limited liability companies (“LLCs”) are preferred business structures because, unlike sole proprietorships and partnerships, both offer liability protection. This means that the owner of a company cannot be held personally responsible for the … [Read more...] about S Corporation vs. LLC: Which Structure is Right for Your Business
Are You Truly Fit to be an Entrepreneur?
In just about any sport, toughness is measured both in physical strength and mental abilities. Some of the challenges include endurance, persistence, perseverance, practice, self-confidence … wait, are we talking sports or business? If you said both, you're right. There are plenty of books out there comparing sports to business, but as an entrepreneur, you're in your own … [Read more...] about Are You Truly Fit to be an Entrepreneur?
How to Change from Sole Proprietorship to Corporation
QUESTION on How to Change from Sole Proprietorship to Corporation Hi! I had recently formed a sole proprietorship which I want to restructure as a Corporation. I have determined that it would be more beneficial for myself and the business if I change the structure to a corporation but I have no idea what I'll have to do to get that done or where I'll have to go. Also, we … [Read more...] about How to Change from Sole Proprietorship to Corporation
How to Convert a Sole Proprietorship to an LLC
QUESTION ON How to Convert a Sole Proprietorship to an LLC I currently have a business structured as a sole proprietorship. I work full-time and my husband runs the business. How do I know when to convert from a sole proprietorship to a corporation or an LLC? We currently have two helpers that we are paying as independent contractors but we are getting more business and may … [Read more...] about How to Convert a Sole Proprietorship to an LLC
How to Limit Liability and Gain Tax Advantage for Corporations
QUESTION ON How to Limit Liability and Gain Tax Advantage For Corporations I have three small business operating as corporations and my objective is to find the best protection -- e.g. limit liability -- and gain tax advantage. My question, firstly is whether I can open up a parent holding company, a LLC, (can a holding company be an LLC?) which will then own the three … [Read more...] about How to Limit Liability and Gain Tax Advantage for Corporations
How to Form LLC as Parent Company with other Separate LLCs
QUESTION on How to Form LLC as Parent Company I am attempting to develop a business structure for a possible client and would like to ask if the following proposal is legitimate. The client owns 4 developed properties, each with equity and debt, all of which I would like to roll intro an LLC. My question is if this new entity can then be split off into 2 separate LLC’s, one … [Read more...] about How to Form LLC as Parent Company with other Separate LLCs
How to Use a Certified Constructor License of a Former Employee
QUESTION ON How to Use a Certified Constructor License of a Former Employee My husband and I have an S corporation in the construction field and provide services to licensed contractors by supplying them with skilled laborers in the Masonry field. We have a former employee that has gotten his Certified Contractors license, which my husband nor I have, that wants us to be … [Read more...] about How to Use a Certified Constructor License of a Former Employee
Forming an LLC and Electing to be Taxed as an “S” Corp
QUESTION ON Forming an LLC Taxed as S-corp Hello. If I form an LLC and elect to be taxed as a S Corp, will I be able to partake of the Self Employment Tax Savings as well as the management ease of a LLC? Single employee computer consulting - Pete Danner - TX ANSWER Dear Pete: You hit the nail right on the head. An LLC that elects to be taxed as an S … [Read more...] about Forming an LLC and Electing to be Taxed as an “S” Corp
Allowing Other People to Use the Name of your Company as their Own
QUESTION ON Allowing Other People To Use Your Company Name Hello, My husband owns a corporation and would like to add two men into his corporation. He doesn't want them to profit from his business, but he wants them to be able to work under his name and license, he is a Drywall Finisher and Painter. How would he do this and how much would it cost? Please let us know as soon … [Read more...] about Allowing Other People to Use the Name of your Company as their Own
How to Issue Stock on a Newly Formed C Corporation
QUESTION on How to Issue Stock on a C Corporation I am in the process of forming a C corporation. There is confusion as to how many shares of stock to issue, 75,000 100,000 5, (an even number). Also, should I give myself the majority of the shares and what amount should I give my wife and kids? Also, should I have my wife and I as joint tenants in common on the majority … [Read more...] about How to Issue Stock on a Newly Formed C Corporation
