QUESTION on How to Handle Resignation of LLC Member Hi. My mother and I started a LLC back in 2003. We are both equal share 50/50 members. However, my mum is getting on and just doesn't want to bother to be part of this any longer. She would like to resign. What do I need to do? Is it a matter of getting the right form and filling it out and filing it and if so what form is … [Read more...] about How to Handle Resignation of LLC Member
How to Change Business From Sole Proprietorship to an S-Corporation
QUESTION ON How to Change Business From Sole Proprietorship to an S-Corporation Hi. I am planning to open a retail store next year and have spent some money on researching the idea, location, etc. I plan to form an S Corp when the store opens, but would like to know if it makes sense to file a sole proprietorship in the mean time so I can write off the expenses this tax … [Read more...] about How to Change Business From Sole Proprietorship to an S-Corporation
How to Issue Employee Stock Options for an S-Corporation
QUESTION ON How to Issue Employee Stock Options for an S-Corporation We have a small S-corp with 3 partners. Two of us have 35% and one has 30%. We hired an employee in March of 2007 and promised him we would each give him 2% after he'd been with us for a year. What are our options in doing this? Do we have to make him a partner or can we just give him the 6% and have it in … [Read more...] about How to Issue Employee Stock Options for an S-Corporation
How to Form LLC or LLP for a Start-Up Home Business
QUESTION ON How to Form LLC or LLP for a Start-Up Home Business I am in the process of starting a partnership for a cleaning company. I have a partnership agreement form, and would like to know what what the principal office of the business is and who it should be. - Jessica W, Maine ANSWER Dear Jessie: The principal business address is typically … [Read more...] about How to Form LLC or LLP for a Start-Up Home Business
Leaving a Startup Company and Non-Compete Agreements
QUESTION ON Leaving a Startup Company and Non-Compete Agreements I am a young professional. I recently chose to withdraw from a startup company prior to its incorporation. I had approached the other key individual with the idea for the startup in fall of 2005. Over the course of 6-8 months of working with the individual I discovered that I could not work with him over the … [Read more...] about Leaving a Startup Company and Non-Compete Agreements
How to Incorporate With Same Company Name in Another State
QUESTION on How to Incorporate With Same Company Name in Another State Can I get to incorporate or form a corporation using my company name in another state if someone else in that state has the same company name? - Jessie Pope, OK ANSWER Dear Jessie: The short answer is "yes, no problem." Now for the long answer Just to be clear, I believe what … [Read more...] about How to Incorporate With Same Company Name in Another State
Member Resignation and Dissolution of LLC
QUESTION ON Member Resignation and Dissolution of LLC Hello, I am a member of the 8-mo. old 4-member LLC, where so much disagreement occurred between members before business could get off the ground, that no business began and members no longer communicate. This has been going on for about 6 months and all requests to unanimously dissolve the LLC have gone ignored by the … [Read more...] about Member Resignation and Dissolution of LLC
How to Add an Officer to an S Corporation
QUESTION on How to Add an Officer to an S Corporation My brother in law has a new S Corporation and he wishes to add his brother as a officer. How can he add an officer to an S Corporation? - Lynda (New Jersey) ANSWER Dear Lynda: The process of adding an officer to a corporation is one of those "formalities" I often talk about with respect to … [Read more...] about How to Add an Officer to an S Corporation
How to Remove a Partner from a C Corporation
QUESTION on How to Remove a Partner from a C Corporation What are the steps and procedures to removing a partner from a C Corporation. This partner is both an officer and a shareholder. Thanks – Dameon, MA ANSWER by Chrissie Mould Dear Dameon: As I am sure you know, a corporation is made up of shareholders, directors and officers. A corporation does … [Read more...] about How to Remove a Partner from a C Corporation
How to Remove a Partner in an S Corporation Business
QUESTION on How to Remove a Partner in an S-Corporation I have an S corp (with 2 original incorporators). I want to "buy out" or actually remove 1 of the incorporators and keep the business. Do I file "Restated Articles of Incorporation"? Thanks – Deanna H. (Michigan) ANSWER by Chrissie Mould Dear Deanna: Let's be careful not to mix apples with … [Read more...] about How to Remove a Partner in an S Corporation Business
