What is the advantages and disadvantages of limited liability company in China Friday, 25 March :48

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "What is the advantages and disadvantages of limited liability company in China Friday, 25 March 2011 13:48"

Transcription

1 Each state has different rules governing the formation of a limited liability company. For instance, in North Dakota, a foreign LLC is not allowed for banking or farming. Some states will want a publication notice with the local newspaper that a company has been formed. Check with your local state office for further details. This article should provide you with the basics of limited liability companies and help guide your decision of company business formation. Each state's laws differ as well as each company situation. It is advisable to seek tax and legal counsel to determine the best choice for your individual circumstance. As a business owner, you will be faced with many important decisions, including what business structure to use in your company formation. While many countries allow the typical structures of sole-proprietorship, partnership, or corporation for business ownership, Americans have the ability to form a limited liability company. What is a Limited Liability Company? A limited liability company (LLC): - is a type of business ownership combining several features of corporation and partnership structures - is not a corporation or a partnership - may be called a limited liability corporation, the correct terminology is limited liability company - owners are called members not partners or shareholders - number of members are unlimited and may be individuals, corporations, or other LLC's Advantages of Limited Liability Company Limited Liability: Owners of a LLC have the liability protection of a corporation. A LLC exists as a separate entity much like a corporation. Members cannot be held personally liable for debts unless they have signed a personal guarantee. 1 / 5

2 Flexible Profit Distribution: Limited liability companies can select varying forms of distribution of profits. Unlike a common partnership where the split is 50-50, LLC have much more flexibility. No Minutes: Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure requires no corporate minutes or resolutions and is easier to operate. Flow Through Taxation: All your business losses, profits, and expenses flow through the company to the individual members. You avoid the double taxation of paying corporate tax and individual tax. Generally, this will be a tax advantage, but circumstances can favor a corporate tax structure. Disadvantages of Limited Liability Company Limited Life: Corporations can live forever, whereas a LLC is dissolved when a member dies or undergoes bankruptcy. Going Public: Business owners with plans to take their company public, or issuing employee shares in the future, may be best served by choosing a corporate business structure. Added Complexity: Running a sole-proprietorship or partnership will have less paperwork and complexity. A LLC may federally be classified as a sole-proprietorship, partnership, or corporation for tax purposes. Classification can be selected or a default may apply. Setting-up a Limited Liability Company All 50 states now allow the formation of LLC`s. Forming your own LLC may not be as simple as a sole-proprietorship, however, the process is much less than a corporation. There are two main actions: 1. Articles of Organization: If you plan to set up a limited liability company, you will have to file 2 / 5

3 articles of organization with the Secretary of State and pay the required fees. Articles may be prepared by a lawyer or filed yourself. 2. Operating Agreement: Although it is not required in many states to draft an operating agreement, it is advisable. Much like corporate by-laws or partnership agreements, the operating agreement can help define your company profit sharing, ownership, responsibilities, and ownership changes. Over the past fifteen years, limited liability companies have become one of the most popular ways for investors to structure their holdings, beating out limited partnerships. From families that pool their money together to Fortune 500 corporations that have subsidiaries, you may have directly or indirectly invested in an LLC without knowing it. This overview was designed to help you understand what LLCs are, why investors use them, and some of the factors you may want to take into consideration before you form an LLC or invest in one. The Benefits of Limited Liability Companies A limited liability company, or LLC as it is often known, is a type of business that combines the benefits of a corporation and a partnership. For example: - Taxation: An LLC can elect for either corporate-level taxation or pass-through taxation. That is, you can decide to have the company pay taxes on its earnings as a regular stock corporation would, or you can have it prepare K-1 statements for each investor showing their pro-rata portion of the profits and losses, which they then declare on their own personal income tax filings. In many cases, this can result in more profits flowing through to the owners because those in lower tax brackets pay less to the government than they otherwise would and the avoidance of double taxation on dividends. - Member vs. Manager Operation: Instead of shareholders, LLCs have members. An 3 / 5

4 LLC can be either member managed or manager managed. In a member managed limited liability company, all owners have a say in day-to-day decisions. In a manager managed limited liability company, the members elect managers to run the business and these managers handle the daily work, often for salary and wages. - Tremendous Flexibility for Profit and Loss Allocation: Profits and losses can be divided virtually any way that is compatible with tax law, unlike with a corporation where everything has to be divided pro-rata. If you and your family formed an LLC to start a restaurant, you could write the contract that governed the business (known as the operating agreement ) to meet your needs no matter how complex; e.g., certain family members who only owned 2% of the business could be paid a percentage of sales plus no losses would count against their stake. In a stock corporation, if you own 2% of a company, you have to take 2% of all profits and all loses, giving you much less flexibility. - Limited Liability for All Investors, Including Managers: Unlike a limited partnership, where the managers, or general partners, have personal liability for the business debts and liabilities, in a limited liability company, no one is personally on the hook unless they agree to be in a contract, such as a commercial bank loan that requires a personal guarantee. (If investors in an LLC don t keep enough distance, courts have allowed investors to become personally liable because they pierced the corporate veil.) - LLCs Have Far Fewer Meeting and Paperwork Requirements: A stock corporation is generally required to file regular paperwork with the state in which the business is formed, as well as publish annual reports, have regular board of directors meetings, and much more. A limited liability company, on the other hand, requires virtually no upkeep. Meetings can be as formal or informal as you wish, as long as everything is properly documented and you don t treat the business as an extension of your personal assets. - Cheap Formation Costs: Limited liability companies can be established for very little money. For simple LLCs among family members, this can require only a few hundred dollars. In fact, you can even use one of several online legal services to file your paperwork, provide 4 / 5

5 fill-in-the-blank operating agreements, blank limited liability company membership certificates, embossed binder, LLC seals, and more. 5 / 5

Limited Liability: Owners of a LLC have the limited liability protection of a corporation.

Limited Liability: Owners of a LLC have the limited liability protection of a corporation. Type of Business Structures & Abbreviation Limited Liability Company (LLC) Description A Limited Liability Company (LLC) is generally accepted type of small business entity. For the majority of small business

More information

A Guide to LLCs. Forming a Limited Liability Company

A Guide to LLCs. Forming a Limited Liability Company A Guide to LLCs Forming a Limited Liability Company Advantages of Forming an LLC Real Estate Investments and LLCs Operating and Maintaining an LLC Comparing LLCs to Other Business Structures Table of Contents

More information

A person. who wants BACKGROUND. corporation. corporation. action, the. The C corporation. subject to. qualify to make. or certain

A person. who wants BACKGROUND. corporation. corporation. action, the. The C corporation. subject to. qualify to make. or certain CHOOSING THE FORM OF BUSINESS ORGANIZATION A person who wants to start a business can choose from a variety of different types of business entity formations. For instance, a person can form a business

More information

A Guide to Incorporating Your Business

A Guide to Incorporating Your Business A Guide to Incorporating Your Business Forming a C or S Corporation Advantages of Incorporating Operating and Maintaining a Corporation Comparing C Corps., S Corps. and LLCs Table of Contents INTRODUCTION....................................................

More information

Incorporating Your Business

Incorporating Your Business A Guide To Incorporating Your Business How to Form a Corporation or LLC Reduce Your Taxes Protect Your Assets Minimize Your Liability Improve Financial Flexibility By Attorney Brian P.Y. Liu Founder of

More information

Incorporating Today's Small Businesses

Incorporating Today's Small Businesses Incorporating Today's Small Businesses Our Service Parcorp Services offers complete and affordable formation services to small businesses and professional throughout the United States. Simply fill in the

More information

CHOOSING THE RIGHT BUSINESS STRUCTURE

CHOOSING THE RIGHT BUSINESS STRUCTURE CHOOSING THE RIGHT BUSINESS STRUCTURE One type of business structure is not necessarily better than another, therefore, it is important to evaluate your needs now and into the future, and consider the

More information

CHOICE OF ENTITY 2010 TENNESSEE AGRITOURISM CULTIVATING FARM REVENUE CONFERENCE

CHOICE OF ENTITY 2010 TENNESSEE AGRITOURISM CULTIVATING FARM REVENUE CONFERENCE 2010 TENNESSEE AGRITOURISM CULTIVATING FARM REVENUE CONFERENCE CHOICE OF ENTITY Presented by Jill Bartee Nolan Batson, Nolan, Pearson, Miller & Joiner, PLC 121 S. Third Street, Clarksville, TN 37040 931-647-1501

More information

The Business Organization: Choosing an Entity

The Business Organization: Choosing an Entity The Business Organization: Choosing an Entity The subject matter is divided into two sections: 1. Section A shows direct comparison of different types of organizational structures. 2. Section B details

More information

DETERMINING THE BUSINESS ENTITY BEST FOR YOUR BUSINESS

DETERMINING THE BUSINESS ENTITY BEST FOR YOUR BUSINESS DETERMINING THE BUSINESS ENTITY BEST FOR YOUR BUSINESS 2015 Keith J. Kanouse One Boca Place, Suite 324 Atrium 2255 Glades Road Boca Raton, Florida 33431 Telephone: (561) 451-8090 Fax: (561) 451-8089 E-mail:

More information

Structuring Your Business

Structuring Your Business Structuring Your Business Overview of Guide This guide is designed to provide basic information on some of the legal and practical issues to consider when setting up a business and applies only to New

More information

Choice of Entity: Corporation or Limited Liability Company?

Choice of Entity: Corporation or Limited Liability Company? September 2012 Choice of Entity: Corporation or Limited Liability Company? By Gianfranco A. Pietrafesa* Attorney at Law There are many different types of business entities, including corporations, general

More information

Arizona Limited Liability Company Discussion

Arizona Limited Liability Company Discussion Arizona Limited Liability Company Discussion If you will be setting up a limited liability company in Arizona, the best time for discussion of questions is before preparing the operating agreement and

More information

SHOULD MY BUSINESS BE AN S CORPORATION OR A LIMITED LIABILITY COMPANY?

SHOULD MY BUSINESS BE AN S CORPORATION OR A LIMITED LIABILITY COMPANY? SHOULD MY BUSINESS BE AN S CORPORATION OR A LIMITED LIABILITY COMPANY? 2015 Keith J. Kanouse One Boca Place, Suite 324 Atrium 2255 Glades Road Boca Raton, Florida 33431 Telephone: (561) 451-8090 Fax: (561)

More information

Six Forms of Doing Business

Six Forms of Doing Business Excerpted from FastTrac NewVenture When identifying an appropriate legal form of business, most often entrepreneurs consider these factors control, taxes, liability, transferability of ownership, longevity

More information

Choice of Entity. Shareholders of publicly traded corporations can come and go with ease

Choice of Entity. Shareholders of publicly traded corporations can come and go with ease One of the most important decisions facing a new business owner is the selection of the most appropriate legal entity for their new business. There are several options including C Corporations, S Corporations,

More information

Corps, Fed IDs, Why Me?

Corps, Fed IDs, Why Me? Corps, Fed IDs, Why Me? THE BUSINESS OF INNOVATION F R E E F O O D a n d F R E E F I N A N C I A L A D V I C E Choice of Entity Understanding the Pros and Cons of Entity Types Available Entity Types 4

More information

Choice of Entity: Corporation or Limited Liability Company?

Choice of Entity: Corporation or Limited Liability Company? March 2014 Choice of Entity: Corporation or Limited Liability Company? By Gianfranco A. Pietrafesa* Attorney at Law There are many different types of business entities, including corporations, general

More information

CHAPTER 1 ESTABLISHING A NEW BUSINESS IN THE UNITED STATES

CHAPTER 1 ESTABLISHING A NEW BUSINESS IN THE UNITED STATES CHAPTER 1 ESTABLISHING A NEW BUSINESS IN THE UNITED STATES 1. CHOICE OF ENTITY A foreign investor may choose from a variety of forms of entities to do business in the United States. Such forms of entities

More information

The sole proprietor is free to make any decision he or she wishes to concerning the business. The major disadvantage is

The sole proprietor is free to make any decision he or she wishes to concerning the business. The major disadvantage is Chapter 11 Corporate Governance & Business Organizations An entrepreneur is one who initiates and assumes the financial risks of a new enterprise and undertakes to provide or control its management. One

More information

Beginner s Guide to Business Entities

Beginner s Guide to Business Entities Beginner s Guide to Business Entities by NEIL PATEL on MARCH 31, 2010 One of the most important early decisions an entrepreneur must make in connection with his or her venture is the choice of entity.

More information

BUSINESS ENTITIES IN COLORADO

BUSINESS ENTITIES IN COLORADO BUSINESS ENTITIES IN COLORADO Types of Colorado Business Entities When starting a business there are many different formats available. In fact, there are so many choices it can be quite dizzying. In general

More information

Business Organization\Tax Structure

Business Organization\Tax Structure Business Organization\Tax Structure One of the first decisions a new business owner faces is choosing a structure for the business. Businesses range in size and complexity, from someone who is self-employed

More information

THE BASICS OF CHOOSING A BUSINESS ENTITY

THE BASICS OF CHOOSING A BUSINESS ENTITY Handout provided courtesy of WHAT IS LIABILITY? 1. Contract Liability THE BASICS OF CHOOSING A BUSINESS ENTITY Colin T. Cameron * Katz Ahern Herdman & MacGillivray PC 1.1. Contract: an agreement between

More information

Sole Proprietorship. Forming a Sole Proprietorship. Sole Proprietor Taxes

Sole Proprietorship. Forming a Sole Proprietorship. Sole Proprietor Taxes Sole Proprietorship A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between

More information

The Advantages and Disadvantages of Forming a Florida Limited Liability Company (LLC) Versus a Florida Corporation. by Karen J.

The Advantages and Disadvantages of Forming a Florida Limited Liability Company (LLC) Versus a Florida Corporation. by Karen J. The Advantages and Disadvantages of Forming a Florida Limited Liability Company (LLC) Versus a Florida Corporation by Karen J. Orlin This Note outlines advantages and disadvantages of forming a new business

More information

Business Organization\Tax Structure

Business Organization\Tax Structure Business Organization\Tax Structure Kansas Secretary of State s Office Business Services Division First Floor, Memorial Hall 120 S.W. 10th Avenue Topeka, KS 66612-1594 Phone: (785) 296-4564 Fax: (785)

More information

LIMITED LIABILITY COMPANY (LLC) (COLORADO)

LIMITED LIABILITY COMPANY (LLC) (COLORADO) LIMITED LIABILITY COMPANY (LLC) (COLORADO) A LLC is normally utilized by investors and businesses to obtain the tax advantages of a partnership, limited partnership, or sole proprietorship, but enjoy more

More information

Limited Liability Companies and Corporate Business Structures

Limited Liability Companies and Corporate Business Structures Limited Liability Companies and Corporate Business Structures Objectives of a Multiple Entities Strategy Retirement planning/providing for a surviving spouse. Tax management income, self-employment, and

More information

FARM LEGAL SERIES June 2015 Choosing the Right Business Entity

FARM LEGAL SERIES June 2015 Choosing the Right Business Entity Agricultural Business Management FARM LEGAL SERIES June 2015 Choosing the Right Business Entity Phillip L. Kunkel, S. Scott Wick Attorneys, Gray Plant Mooty INTRODUCTION There are many types of business

More information

Structuring Your New Business By Business Filings Incorporated

Structuring Your New Business By Business Filings Incorporated Structuring Your New Business By Business Filings Incorporated There are five common business structures entrepreneurs often consider as they start their businesses: sole proprietorship, general partnership,

More information

Incorporation Guide Guide to Incorporating and Forming a Limited Liability Company

Incorporation Guide Guide to Incorporating and Forming a Limited Liability Company Incorporation Guide Guide to Incorporating and Forming a Limited Liability Company Toll-Free: 877-692-6772 Direct/Intl: 818-224-7639 Our Incorporation Guide is developed with the help of the small business

More information

A worker cooperative may find the LLC model to offer many advantages.

A worker cooperative may find the LLC model to offer many advantages. Limited Liability Companies as Worker Cooperatives By Sarah Sexton, Law Clerk What is a Worker Cooperative? A worker cooperative is a business comprised of members that are both workers and owners of the

More information

Chapter Six. Limited Liability Companies

Chapter Six. Limited Liability Companies Chapter Six Limited Liability Companies I have discussed various for-profit business structures for authors including sole proprietorships, partnerships and corporations. You may have heard about another

More information

Forms of Ownership. Entrepreneurship. Mr. Rodrigues

Forms of Ownership. Entrepreneurship. Mr. Rodrigues Forms of Ownership Entrepreneurship Mr. Rodrigues Objectives Identify the significance of business ownership to the entrepreneurial process. Identify and discuss forms of business ownership Identify and

More information

To Incorporate or Not to Incorporate? That is the Question. By Julia Sylva, Esq.

To Incorporate or Not to Incorporate? That is the Question. By Julia Sylva, Esq. To Incorporate or Not to Incorporate? That is the Question. By Julia Sylva, Esq. There are many avenues that a company, new or old, may take in the formation of a business. This paper will discuss the

More information

Incorporating Your Business

Incorporating Your Business CorpNet s Guide to: Incorporating Your Business TM www.corpnet.com Congratulations! You have decided to start your own business. That is a courageous step and one that can lead to rewards that no job can

More information

Business Entities and Small Business Tax Reform

Business Entities and Small Business Tax Reform Business Entities and Small Business Tax Reform Douglas A. Shackelford Meade H. Willis Distinguished Professor of Taxation Kenan-Flagler Business School University of North Carolina at Chapel Hill Testimony

More information

Choosing a Business Entity For Your Real Estate Brokerage

Choosing a Business Entity For Your Real Estate Brokerage Choosing a Business Entity For Your Real Estate Brokerage Presented by Jon Sargent, Esq. JonS@frascona.com Frascona, Joiner, Goodman and Greenstein, P.C. www.frascona.com Entity Choices Sole Proprietorship

More information

The ABCs of Entity Choice By Thomas A. Brumgardt

The ABCs of Entity Choice By Thomas A. Brumgardt Legal Basics Part 4 in a series The ABCs of Entity Choice By Thomas A. Brumgardt Every lawyer needs to know the basics of advising clients on choice of entity. Even if you do not regularly practice in

More information

MORE THAN FIVE MILLION corporations

MORE THAN FIVE MILLION corporations Corporations MORE THAN FIVE MILLION corporations exist in the United States with revenues totaling more than 17 billion dollars annually. In 2008, Walmart topped the list with Kroger, ADM, Tyson, Dow,

More information

COMPREHENSIVE GUIDE TO CHOOSING A NEW BUSINESS STRUCTURE

COMPREHENSIVE GUIDE TO CHOOSING A NEW BUSINESS STRUCTURE COMPREHENSIVE GUIDE TO CHOOSING A NEW BUSINESS STRUCTURE 1. Corporations and LLCs: The most common entities 2. Comparing corporations and LLCs 3. Things to consider when forming a business entity 4. Which

More information

GUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE

GUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE GUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE To make your business #CPAPOWERED, call today and let s get started. 2015 American Institute of CPAs. All rights reserved. 15607-312 One important

More information

GUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE. To make your business #CPAPOWERED, call today and let s get started.

GUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE. To make your business #CPAPOWERED, call today and let s get started. GUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE To make your business #CPAPOWERED, call today and let s get started. One important consideration when starting your business is determining the best

More information

HOW TO AVOID POTENTIAL PERSONAL LIABILITY FOR COMPANY OBLIGATIONS PREVENTING OTHERS FROM PIERCING THE CORPORATE VEIL

HOW TO AVOID POTENTIAL PERSONAL LIABILITY FOR COMPANY OBLIGATIONS PREVENTING OTHERS FROM PIERCING THE CORPORATE VEIL HOW TO AVOID POTENTIAL PERSONAL LIABILITY FOR COMPANY OBLIGATIONS PREVENTING OTHERS FROM PIERCING THE CORPORATE VEIL Roofing contractors take large risks and face substantial liabilities. By going into

More information

Boston Executive Briefing Series

Boston Executive Briefing Series Boston Executive Briefing Series Company: Solving the Puzzle of C Corp, Presented by: Kenneth R. Appleby and Thomas A. Rosenbloom INTRODUCTION Selection of the form of legal entity is one of the most important

More information

Choice of Entity. Paul E. Costantino, CPA, MST Costantino Richards Rizzo, LLP, Wakefield

Choice of Entity. Paul E. Costantino, CPA, MST Costantino Richards Rizzo, LLP, Wakefield Choice of Entity Paul E. Costantino, CPA, MST Costantino Richards Rizzo, LLP, Wakefield I. Overview of Entities The entity selection process is one of the first steps in the formation of any business,

More information

I. WHY LIMITED LIABILITY COMPANIES? A. History and Types of LLC s:

I. WHY LIMITED LIABILITY COMPANIES? A. History and Types of LLC s: I. WHY LIMITED LIABILITY COMPANIES? A. History and Types of LLC s: The concept of the limited liability company did not begin to develop until the 1970 s. In 1977 the state of Wyoming enacted the first

More information

The CED Clinic is supported by the Economic Development Administration, U. S. Department of Commerce, through its University Centers Program.

The CED Clinic is supported by the Economic Development Administration, U. S. Department of Commerce, through its University Centers Program. The CED Clinic is supported by the Economic Development Administration, U. S. Department of Commerce, through its University Centers Program. 1 Community Economic Development Clinic Creighton Univ. School

More information

CHOOSING A BUSINESS ENTITY IN TODAY S BUSINESS WORLD

CHOOSING A BUSINESS ENTITY IN TODAY S BUSINESS WORLD CHOOSING A BUSINESS ENTITY IN TODAY S BUSINESS WORLD Kenneth L. Wenzel Bourland, Wall & Wenzel, P.C. City Center Tower II 301 Commerce Street, Suite 1500 Fort Worth, Texas 76102-4115 The information set

More information

The Legal Aid Society Community Development Project 230 East 106th Street New York, NY 10029 212.426.3000

The Legal Aid Society Community Development Project 230 East 106th Street New York, NY 10029 212.426.3000 The information in this document is provided for informational purposes only and does not constitute legal advice. Please consult a qualified attorney prior to acting upon the information contained in

More information

LIMITED LIABILITY COMPANIES

LIMITED LIABILITY COMPANIES LIMITED LIABILITY COMPANIES AGRICULTURAL APPLICATIONS PRESENTED BY KENT B MILLER EXTENSION AG ECONOMIST KS FARM MGT ASSOC SE 103 ½ E. 9 TH, SUITE 202 WINFIELD, KS 67156-2858 620-221-6906 kentfmse@yahoo.com

More information

SAALFELD GRIGGS DENTAL INDUSTRY TEAM WHITE PAPER: CHOICE OF ENTITY FOR DENTISTS

SAALFELD GRIGGS DENTAL INDUSTRY TEAM WHITE PAPER: CHOICE OF ENTITY FOR DENTISTS SAALFELD GRIGGS DENTAL INDUSTRY TEAM WHITE PAPER: CHOICE OF ENTITY FOR DENTISTS BY Th AMY GEERHART & DAVID MYERS I. Introduction Dentists may operate their practices through several forms of entities,

More information

S CORPORATION VS. LLC: THE BEST STRUCTURE FOR YOUR CALIFORNIA BUSINESS? (OWNERSHIP, OPERATION, AND EMPLOYMENT TAX) (Business Advisory No.

S CORPORATION VS. LLC: THE BEST STRUCTURE FOR YOUR CALIFORNIA BUSINESS? (OWNERSHIP, OPERATION, AND EMPLOYMENT TAX) (Business Advisory No. S CORPORATION VS. LLC: THE BEST STRUCTURE FOR YOUR CALIFORNIA BUSINESS? (OWNERSHIP, OPERATION, AND EMPLOYMENT TAX) (Business Advisory No. 11) Choosing the proper legal entity to hold and operate your California

More information

Limited Liability Company

Limited Liability Company Price & Farrington s Estate Planning Tools and Tips Timely Information for Advisors About Advanced Estate Planning and Family Wealth Strategies Limited Liability Company How do you provide business transition

More information

CorpNet s Guide to: Forming An LLC. www.corpnet.com

CorpNet s Guide to: Forming An LLC. www.corpnet.com CorpNet s Guide to: Forming An LLC TM www.corpnet.com Congratulations! You have decided to start your own business. That is a courageous step and one that can lead to rewards that no job can offer. When

More information

Sneak Preview. Real Estate Accounting & Taxation. Included in this preview: Copyright Page Table of Contents Excerpt of Chapter 1

Sneak Preview. Real Estate Accounting & Taxation. Included in this preview: Copyright Page Table of Contents Excerpt of Chapter 1 Sneak Preview Real Estate Accounting & Taxation By John F. Mahoney, CPA Included in this preview: Copyright Page Table of Contents Excerpt of Chapter 1 For additional information on adopting this book

More information

CHOICE OF BUSINESS ENTITY

CHOICE OF BUSINESS ENTITY CHOICE OF BUSINESS ENTITY Presented by James M. Jimenez, Esq. Pacific Business Law Group A Professional Corporation 1601 Cloverfield Boulevard Suite 200 South Tower Santa Monica, California 90401 July

More information

Corporation, Limited Liability Company, or Partnership: What Type of Business Entity Should I Form?

Corporation, Limited Liability Company, or Partnership: What Type of Business Entity Should I Form? Corporation, Limited Liability Company, or Partnership: What Type of Business Entity Should I Form? Kandace P. Watson, Partner Kilpatrick Townsend & Stockton LLP kwatson@ktslaw.com February 27, 2013 2012

More information

How to Set Up Your Company to Minimize Taxes: Business Organization Basics

How to Set Up Your Company to Minimize Taxes: Business Organization Basics How to Set Up Your Company to Minimize Taxes: Business Organization Basics You want to keep a close eye on everything that impacts the financial side of business. After all, finances determine whether

More information

Vertex Wealth Management LLC

Vertex Wealth Management LLC Vertex Wealth Management LLC Michael Aluotto President Private Wealth Manager 1325 Franklin Ave., Ste. 335 Garden City, NY 11530 516-294-8200 mjaluotto@1stallied.com S Corporation Page 1 of 7, see disclaimer

More information

2:4 Letter to client regarding choice between LLC and S corporation

2:4 Letter to client regarding choice between LLC and S corporation 2:4 Letter to client regarding choice between LLC and S corporation Dear [Client]: I understand that you are interested in creating a new business entity for a [type of business] business. This letter

More information

CHOICE OF ENTITY CONSIDERATIONS. A Basic Guide to Entrepreneurs. October 9, 2012

CHOICE OF ENTITY CONSIDERATIONS. A Basic Guide to Entrepreneurs. October 9, 2012 CHOICE OF ENTITY CONSIDERATIONS A Basic Guide to Entrepreneurs October 9, 2012 Bill Osterbrock, Of Counsel Baker Donelson wosterbrock@bakerdonelson.com 404-589-3418 Iliana Malinov, Tax Manager HLB Gross

More information

Types of Business Ownership

Types of Business Ownership Types of Business Ownership Sole Proprietorship A sole proprietorship is the easiest and simplest form of business ownership. It is owned by one person. There is no distinction between the person and the

More information

Small Business Essentials: Bringing Business Law Down to Earth

Small Business Essentials: Bringing Business Law Down to Earth Small Business Essentials: Bringing Business Law Down to Earth A SERIES OFFERED BY Attorneys aren t from Mars. Business clients aren t from Venus. PRESENTED BY Business Risk Two phases of the business

More information

BUSINESS BANKING White Paper Series. Small Business Structures and Taxes

BUSINESS BANKING White Paper Series. Small Business Structures and Taxes White Paper Series Small Business Structures and Taxes July 2014 To run a small business, you have to make big decisions. If you employ fewer than 500 people, the United States Small Business Association

More information

Chapter 001 Introduction to Corporate Finance

Chapter 001 Introduction to Corporate Finance Multiple Choice Questions 1. The person generally directly responsible for overseeing the tax management, cost accounting, financial accounting, and data processing functions is the: a. treasurer. b. director.

More information

Generally speaking all three offer much the same protection for your personal assets if the business is sued.

Generally speaking all three offer much the same protection for your personal assets if the business is sued. Which business structure is best for my business? The most popular business structures are the: Sole proprietorship, Partnership, Limited liability company (LLC), S corporation (S corp) and C corporation

More information

Major Business Entities Explained

Major Business Entities Explained Major Business Entities Explained Many entrepreneurs start their businesses as a sole proprietor because it is easy and inexpensive. This is never a good idea but in reality it does happen. As the business

More information

2014 Tax Rate Comparison 14.52% 45.17% 27.68% 45.17% 47.38% 45.17% 33.33% 35.56% 33.33% 27.60% 23.69% 22.58% TOTAL TAX OF 44.98%

2014 Tax Rate Comparison 14.52% 45.17% 27.68% 45.17% 47.38% 45.17% 33.33% 35.56% 33.33% 27.60% 23.69% 22.58% TOTAL TAX OF 44.98% Is Incorporation The Right Choice For Your Practice Agenda Presented by: Marisa Cobuzzi, F.Pl. ADVANTAGES 1 2 Should I Incorporate My Medical Practice RUNNING THE NUMBERS The Tax Deferral Advantage 2014

More information

The Selection of an Appropriate Business Organizationcan Impact Liability, Taxes, Owner s Rights and Future Ability to Sell an Ownership Interest

The Selection of an Appropriate Business Organizationcan Impact Liability, Taxes, Owner s Rights and Future Ability to Sell an Ownership Interest CHOOSING THE RIGHT TYPE OF BUSINESS ORGANIZATION IN ARIZONA The Selection of an Appropriate Business Organizationcan Impact Liability, Taxes, Owner s Rights and Future Ability to Sell an Ownership Interest

More information

Setting Up the Right Business Entity. Deborah S Sweeney, Esq. Jeffrey Bradley, CPA

Setting Up the Right Business Entity. Deborah S Sweeney, Esq. Jeffrey Bradley, CPA Setting Up the Right Business Entity Deborah S Sweeney, Esq. Jeffrey Bradley, CPA 1 Objectives 1. Discuss Incorporations & Online Business Filings for Accounting Professionals 2. Understand Business Entity

More information

SCORE SAS 64 Sponsored by U. S. Small Business Administration ORANGE COUNTY CHAPTER 114, (714) 550-7369 www.score114.org

SCORE SAS 64 Sponsored by U. S. Small Business Administration ORANGE COUNTY CHAPTER 114, (714) 550-7369 www.score114.org SCORE SAS 64 Sponsored by U. S. Small Business Administration ORANGE COUNTY CHAPTER 114, (714) 550-7369 www.score114.org The subject matter is divided into two sections: THE BUSINESS ORGANIZATION CHOOSING

More information

COMPANY FORMATION GUIDEBOOK

COMPANY FORMATION GUIDEBOOK COMPANY FORMATION GUIDEBOOK Provided by: MyNewCompany.com, Inc. www.mynewcompany.com support@mynewcompany.com 187 E. Warm Springs Rd. Suite B Las Vegas, NV 89119 800.326.1362 Copyright MyNewCompany.com,

More information

Forming Your Esports Organization

Forming Your Esports Organization Forming Your Esports Organization Richard K. Zepfel and Timothy J. Heggem Payne & Fears LLP Introduction In 2014 over 27 million people watched the League of Legends World Championships on Twitch and ESPN3.

More information

NOLO. Nolo s Guide to Limited Liability Companies: Forming an LLC

NOLO. Nolo s Guide to Limited Liability Companies: Forming an LLC NOLO Nolo s Guide to Limited Liability Companies: Forming an LLC Table of Contents LLC Basics...3 Limited Personal Liability for LLC Owners...3 Exceptions to LLC Owners Limited Liability...4 LLC Management...4

More information

Pros and Cons of Incorporating a California Construction Business

Pros and Cons of Incorporating a California Construction Business Pros and Cons of Incorporating a California Construction Business By Scott Green, Esq. GREEN & CAMPBELL, LLP 1777 E. Los Angeles Ave., #201 Simi Valley, CA 93065 Please note that this article is only intended

More information

By: Craig A. Taylor, Attorney

By: Craig A. Taylor, Attorney WHEN A LIMITED LIABILITY COMPANY IS THE BEST CHOICE By: Craig A. Taylor, Attorney Carruthers & Roth, P.A. 235 N. Edgeworth Street Greensboro, NC 27401 Telephone: (336) 379-8651 Fax: (336) 273-7885 cat@crlaw.com

More information

Sub-Chapter S Corporation Quick Fact Sheet and Manual presented by

Sub-Chapter S Corporation Quick Fact Sheet and Manual presented by Sub-Chapter S Corporation Quick Fact Sheet and Manual presented by --NationalLienLaw.com Questions: Give us a call. (800) 995-9434 What is it? Generally, it is a corporation that acts like a sole proprietorship

More information

LLC OUTLINE Table of Contents

LLC OUTLINE Table of Contents LLC OUTLINE Table of Contents I. INTRODUCTION... 1 A. Consider The Following Example:... 1 1. How should this trio proceed to organize?... 1 2. A Better Choice:... 1 B. Limited Liability Company... 2 1.

More information

LIMITED LIABILITY COMPANIES

LIMITED LIABILITY COMPANIES INTELLECTUAL PROPERTY AND TRANSACTIONAL LAW CLINIC LIMITED LIABILITY COMPANIES INTRODUCTORY OVERVIEW Limited liability companies ( LLC s ) are a hybrid form of business entity that draws from a combination

More information

Legal Needs for Emerging Growth Companies Presented to UF Small Business Mentoring Program June 9, 2015 by Maxwell L. Minch Gray Robinson P.A.

Legal Needs for Emerging Growth Companies Presented to UF Small Business Mentoring Program June 9, 2015 by Maxwell L. Minch Gray Robinson P.A. Legal Needs for Emerging Growth Companies Presented to UF Small Business Mentoring Program June 9, 2015 by Maxwell L. Minch Gray Robinson P.A. About Me Former Navy submariner (nuclear electronics technician)

More information

WHAT IS THE DIFFERENCE BETWEEN A SUBCHAPTER C AND S CORPORATION IN ARIZONA?

WHAT IS THE DIFFERENCE BETWEEN A SUBCHAPTER C AND S CORPORATION IN ARIZONA? WHAT IS THE DIFFERENCE f BETWEEN A SUBCHAPTER C AND S CORPORATION IN ARIZONA? While C and S-Corporations Share Common Traits, There are Important Differences Between the Two Different Corporate Forms Lotzar

More information

Different Types of Corporations: Advantages/ Disadvantages of Corporations

Different Types of Corporations: Advantages/ Disadvantages of Corporations Different Types of Corporations: Advantages/ Disadvantages of Corporations Article published at: http://www.morebusiness.com/getting_started/incorporating/d934832501.brc Anyone who operates a business,

More information

Choice of Business Entities

Choice of Business Entities Choice of Business Entities In order to carry on a trade or business, a type of business entity must be chosen. For all practical purposes, the four major business entities for the current 2000 year are:

More information

Forms of Business Ownership

Forms of Business Ownership Forms of Business Ownership Chapter 6 Better Business 2nd Edition Solomon (Contributing Editor) Poatsy Martin 6 1 Learning Objectives 1. What are the strengths and weaknesses of a sole proprietorship?

More information

University of Victoria Faculty of Law Business Law Clinic

University of Victoria Faculty of Law Business Law Clinic University of Victoria Faculty of Law Business Law Clinic 1 University of Victoria Faculty of Law PO Box 1700, STN CSC Victoria, British Columbia, V8W 2Y2 Tel (250) 472-4522, Fax (250) 721-8146 Disclaimer:

More information

S Corporation C Corporation Partnership. Company (LLC)

S Corporation C Corporation Partnership. Company (LLC) Description An LLC can only be formed by making appropriate filing with the state (see below). Owners are called members and the LLC may be managed by the members, similar to a partnership, or by managers

More information

Types of Business & Business Ownership

Types of Business & Business Ownership CHAPTER Types of Business & Business Ownership Section 3.1 Types of Business Section 3.2 Types of Business Ownership SECTION Types of Business OBJECTIVES Identify the four main types of business Examine

More information

LEGGO MY ALTER EGO! WHAT YOU NEED TO KNOW ABOUT PIERCING THE CORPORATE VEIL

LEGGO MY ALTER EGO! WHAT YOU NEED TO KNOW ABOUT PIERCING THE CORPORATE VEIL LEGGO MY ALTER EGO! WHAT YOU NEED TO KNOW ABOUT PIERCING THE CORPORATE VEIL K AREN L. HART, PARTNER B ELL NUNNALLY & MARTIN LLP 3232 MC K INNEY AVE., STE. 1400 D ALLAS, TEXAS 75204 (214) 740-1444 KARENH@

More information

DBI 5 Minute Incorporation Tutorial Incorporation vs Sole Proprietorship

DBI 5 Minute Incorporation Tutorial Incorporation vs Sole Proprietorship Incorporation vs Sole Proprietorship The primary reason business owners choose to incorporate or form an LLC is to limit the liability they would face in the event of a lawsuit or bankruptcy. Incorporation

More information

CHOOSING A BUSINESS ENTITY: PRACTICAL CONSIDERATIONS

CHOOSING A BUSINESS ENTITY: PRACTICAL CONSIDERATIONS CHOOSING A BUSINESS ENTITY: PRACTICAL CONSIDERATIONS Dean P. Cazenave KEAN, MILLER, HAWTHORNE, D ARMOND, MCCOWAN & JARMAN, L.L.P. One American Place Baton Rouge, Louisiana 70825 I. THE CHOICES The decision

More information

THE LEGAL ASPECTS OF GOING INTO BUSINESS

THE LEGAL ASPECTS OF GOING INTO BUSINESS THE LEGAL ASPECTS OF GOING INTO BUSINESS Copyright 1997 Board of Regents, University of Wisconsin System Mark Stover, Vicki Lobermeier, Kathy Bartelt, Editors Small Business Development Center This publication

More information

Issues Relating To Organizational Forms And Taxation. U.S.A. NEW YORK Alston & Bird LLP

Issues Relating To Organizational Forms And Taxation. U.S.A. NEW YORK Alston & Bird LLP Issues Relating To Organizational Forms And Taxation U.S.A. NEW YORK Alston & Bird LLP CONTACT INFORMATION Stephanie Denkowicz/ William Ruehl/ Edward Tanenbaum Alston & Bird LLP 90 Park Avenue New York,

More information

INCORPORATING YOUR BUSINESS IS POTENTIALLY THE SINGLE MOST IMPORTANT THING A BUSINESS OWNER CAN DO

INCORPORATING YOUR BUSINESS IS POTENTIALLY THE SINGLE MOST IMPORTANT THING A BUSINESS OWNER CAN DO INCORPORATING YOUR BUSINESS IS POTENTIALLY THE SINGLE MOST IMPORTANT THING A BUSINESS OWNER CAN DO Mark D. Klein, Esq. KLEIN LAW CORPORATION 15615 Alton Parkway, Suite 175 Irvine, CA 92618 (949) 453-7979

More information

FIN 3000. Chapter 1: Principles of finance. Liuren Wu

FIN 3000. Chapter 1: Principles of finance. Liuren Wu FIN 3000 Chapter 1: Principles of finance Liuren Wu Overview 1. What is finance? 2. Three types of business organizations 3. The goal of the financial manager 4. The four basic principles of finance Learning

More information

Organizational Types and Considerations for a Small Business

Organizational Types and Considerations for a Small Business Table of Contents Welcome... 3 What Do You Know? Organizational Types and Considerations for a Small Business... 4 Pre-Test... 5 Factors for Choosing an Organizational Type... 7 Discussion Point #1: Organizational

More information

Options for Worker Co-op Legal Structure

Options for Worker Co-op Legal Structure Options for Worker Co-op Legal Structure California Co-op Conference Jenny Kassan, Katovich Law Group jenny@katovichlaw.com (510) 834-4530 August 16, 2009 Options for Worker Co-op Legal Structure Cooperative

More information

THE PATIENT-CENTERED & DATA-DRIVEN ISSUE

THE PATIENT-CENTERED & DATA-DRIVEN ISSUE THE PATIENT-CENTERED & DATA-DRIVEN ISSUE Should Your Practice be a Corporation, LLC or? BY JEREMY KIECKER, CPA Having the right entity is important financially and legally Whether you are just starting

More information