QUESTION on What is a Partnership: Types of Partnerships My friend has created his own Greeting Card Business. He is the creator and founder. He wants a partner, and would like me to be it. We both agree on 50-50 partnership. What type of partnerships are out there like joint venture ownership? I want to know all the types of partnerships that are out there and their pros … [Read more...] about What is a Partnership: Types of Partnerships?
QUESTION ON All What is a Limited Liability Company (LLC)? Editor's Note: These questions were sent in by a reader who needed to make clarifications on the features of an LLC. Ms. Mould gives her answer and hopefully will clear the issue that Ms. Jay is trying to raise. Q-1 Chrissie Mould's article on S Corp vs. LLC, the author makes a grave error in stating that an LLC … [Read more...] about What is a Limited Liability Company (LLC)?
QUESTION ON Using A Self-Directed IRA to Invest in Business Hello. I have a small business that I would like to invest additional monies in. One of the sources is a simple IRA being managed by my financial institution. I was advised that I could set up a self-directed IRA to invest that money in the business. As an S-Corp, would that be possible? And how would I go about … [Read more...] about How to Use a Self-Directed IRA for Business Investing
QUESTION ON Can a Subsidiary LLC be a Managing Member of Its Parent LLC ? Can a subsidiary LLC be a managing member of its parent LLC ? That is, I have a parent LLC and it is a managing member of a sub LLC then the membership of the parent LLC is updated by including the sub LLC as a managing member of the parent LLC. What would be the pros and cons of this arrangement ? A … [Read more...] about Can a Subsidiary LLC be a Managing Member of Its Parent LLC ?
QUESTION ON Self Directed IRAs Can I use an LLC to invest funds from a self directed IRA in real estate? If yes, how would I structure the LLC. If no, what structure can I use and how would it be structured? - Robert Panzera, New York ANSWER Dear Robert: The answer to the first part of your question is yes. The use of limited liability companies in … [Read more...] about How to Use LLC to Invest Funds From a Self Directed IRA
QUESTION ON How a Corporation Can Elect to be an S Corporation I requested my EIN as a personal services corporation and want to change it to an S-Corporation. How do I do elect to be an S Corporation? - Linda Dixon, FL ANSWER Dear Linda: Let's discuss corporate taxation for a moment. A regular corporation (or "C corporation") is an entity that is taxed … [Read more...] about How a Corporation Can Elect to be an S Corporation
QUESTION on what happens when a business partner dies or leaves a business partnership Can you have a business partnership with only one person? I know business partnerships are usually two or more people but I was wondering if it is possible to have a partnership with only one person. Say, one business partner dies or leaves? – Jana Reiman, ID ANSWER Dear … [Read more...] about When a Business Partner Dies or Leaves the Business Partnership
QUESTION ON How to Transfer a Company's Contractors License to Another Company My question has to do with a corporation using the general contractors license of someone and that person not having to be involved with the everyday operations such as pulling permits etc. Also, what percentage of the company would he need to own or what % of the shares ? Any information would … [Read more...] about How to Transfer a Company’s Contractors License to Another Company
QUESTION on How to Reduce Capital Gains Tax of a C Corporation I own a small C corporation and am in the process of selling a plot of land, However since I am a C corporation I will be getting taxed almost 35% is there anything I can do to avoid getting taxed such a high rate? – John Hapner, FL. ANSWER by Chrissie Mould Dear John: I always recommend … [Read more...] about How to Reduce Capital Gains Tax of a C Corporation
QUESTION on How to Add a Partner to an S Corporation I just established an S-Corp and want to add someone as an equal partner/shareholder. At setup, I bought 1000 shares of the 5000. Do I just sell him 1000 shares and make him my Vice President or CTO? Thanks - Anthony Randazzo, MD ANSWER Dear Anthony: You generally have the right idea. Just remember … [Read more...] about How to Add a Partner to an S Corporation