Youve done your research and have decided on a business entity. Youre chomping at the bit to open a bank account and get moving. You file your corporation or LLC with the Secretary of State and wait and wait and wait. Just how long is this going to take?
California Limited Liability Company An Overview
Many people are surprised to learn that the LLC business entity is a fairly recent phenomenon. Wyoming was the first state to legislate the creation of LLCs in 1977. Most states didnt jump on the LLC bandwagon until 1988 when the IRS classified the LLC as a pass through entity for tax purposes. This ruling turned LLCs into the popular monster they are today. Now every state has legislation allowing the creation of LLCs and California is no different.
What Does It Mean To Become An LLC?
LLC also known as Limited Liability Corporation or Company is a type of business entity. Which is much like a corporation, just cheaper and less paperwork to obtain. When you operate under a LLC, you qualify for a tax ID number from the IRS, you can also open a bank account and perform all of your business transactions under your LLC name.
LLC And Incorporating Laws
If you are thinking about becoming incorporated, or a LLC, you are probably wondering about the laws, and how they might effect you and your company. First of all, the laws are all different, for each and every state. Whichever state you decide that you want to do business in, that would be the state laws that you would consult and follow. Because all states are different, and all of them have their own laws in place, it would be difficult to try and list them.
Tax Advantages Of Incorporating A Business
The tax advantages of incorporating a business is one of the main reasons that owners choose to incorporate their businesses, no matter what market they work in. Other types of businesses, such as sole proprietorships, are not afforded nearly as many tax advantages as an incorporation.
A move called income shifting is one that helps the business, and its owners, immensely. This is a method in which the total income of your corporation is divided among its members. How doe…
Why You Need A Business Entity
When starting or expanding a business, many owners wonder if they should form a business entity and, if so, which one they should use. There is a wide variety of information and “pitches” being made on the Internet regarding the benefits of certain entities versus others. When you cut through the flak, however, the primary reason for forming a business entity is to create protection from personal liability arising from your business activities.
Using Caution When Incorporating In California
If you are a business owner, you of course want to do what will give it the best chance for success. That includes making it easier for you to operate your business. That is why many proprietors turn to business incorporation. Incorporating your business can be very beneficial to you and your business. However, if you are a business owner in California, you might want to think hard about the decision to incorporate there. Incorporating in California or incorporating in anothe…
Why Opt For A Limited Liability Company?
Entrepreneurs must already choose the legal structure of their business even before they start such venture, if only to make sure that they now the risks and the advantages involved in starting that kind of business. Business owners can choose to put up a sole or single proprietorship, enter into a partnership or form a corporation.
Each of the three legal structures has its own advantages and disadvantages. A sole proprietorship is the easiest type of business to put up a…
To incorporate or not to incorporate?
It seems that more companies feel the need to incorporate than ever before. In today’s society, just everybody can sue and everybody can be sued and that makes a corporation all the more attractive. However, there are unfortunately more obstacles surrounding incorporation than ever before. So what are the advantages and disadvantages of incorporation? Is it right for your company?
Tax Benefits of Incorporation
Some companies may seem to escape death, but they will ever be able to escape taxes. That doesn’t mean there aren’t some tax benefits out there, though, that only the corporations are getting. Companies are tempted to incorporate for a number of reasons, but more and more often, taxes are the main motivator. But why?
The Basics Of Business Incorporation
If you are a business owner, even if it is a small business, you want to be successful. You are undoubtedly aware of the work it takes to make a business profitable. You might also be aware of the different tax penalties and other ways that the government makes it difficult for a small, young business to make it. You should consider business incorporation. It is not as complicated as you might think it is, in fact, it is quite easy to incorporate your business. By doing it, y…