Rusty Tweed Explains How to Structure a Business

The Startup Magazine

Limited Liability Company. The way that one goes about making a selection is based upon their field of expertise, size of the future project, amount of capital needed to get started, the risk and liability, and so on.

Corporation Versus A Limited Liability Company

Recent Buzzes - VC Experts, Inc.

There are a number of alternatives structures, including general and limited partnerships, business trusts, sole proprietorships, etc. In the final analysis, the choice of entity usually comes down to an election between a corporation, whether S corporation or C corporation, and a limited liability company. Corporate shares were designed to be liquid; not so limited liability company interests. By Joseph W.

How to Form a LLC

Up and Running

You might want to consider a limited liability company, or an LLC, because in some ways you get the best of both worlds: You get the benefit of personal liability protection, as you would with a corporation. Liability protection.

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Corporation Versus A Limited Liability Company

Recent Buzzes - VC Experts, Inc.

There are a number of alternatives structures, including general and limited partnerships, business trusts, sole proprietorships, etc. In the final analysis, the choice of entity usually comes down to an election between a corporation, whether S corporation or C corporation, and a limited liability company.

Investing In Real Estate: Should I Form An LLC?

YFS Magazine

Finance Grow investing limited liability company LLC money real estate investingIt is important for investors to understand the characteristics of an LLC to determine the best practice in structuring each investment.

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[Infographic] Choosing A Business Structure

YoungUpstarts

Putting together a company and have no idea which business structure would suit you? Others business structure Business.com company incorporation infographicHaven’t some of us struggled with that before – I know I did.

5 Business Entities Suitable for Your Blogging Business

Blogtrepreneur | Entrepreneur Blog

Bloggers can exchange their business and personal assets by using this legal form but they will be liable for the company’s debts and obligations. In some jurisdictions however, one of the partners will be treated as a general one while the other will have limited liability.

What should I include in an investor provisions summary?

Gust

Here are some thoughts that immediately come to mind: 1) The only types of US companies that have “Operating Agreements” are Limited Liability Companies (LLCs), and this structure is very difficult to use for (a) raising money, (b) issuing options, and (c) governance once things begin to get complicated. Invested Interests angel investor attorney companies entrepreneur investors provision summary startup

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If I register a sole proprietorship or a partnership, how will I pay myself?

Up and Running

Sole proprietorships and partnerships are both more straightforward than Limited Liability Companies (LLC) and Corporations. Like a sole proprietorship, all partners share liability.

What is an L3C?

Up and Running

In recent years, socially-minded entrepreneurs have begun testing a new type of business entity: the L3C, or Low Profit Limited Liability Corporation. The United Kingdom began using a similar structure in 2005, called a Community Interest Company.

Startups And Owner’s Draws: The 411

Early Growth Financial Services

But sole proprietors, partners in a partnership, and members of a limited liability company are not paid wages because they are considered to be self-employed. This guest post by Robert W. Ditmer was originally published on Justworks. In many businesses, workers are paid wages or a salary, compensation that is subject to income tax withholding and employer taxes.

Applicability of Delaware Income Tax

Recent Buzzes - VC Experts, Inc.

The applicability of the Delaware corporate income tax to limited liability companies (LLCs) is determined by the LLC's classification for federal income tax purposes. The Delaware income tax applies to domestic and foreign corporations, other than those specifically exempted, deriving income from business activities carried on and from property located within Delaware during the income year.

Keep It Clean: Mixing Business And Personal Finance

YoungUpstarts

by Tony Smith, Managing Director at Company Debt. Consider a Limited Liability Company (LTD). A business can be set up as a separate legal entity, such as a Limited Liability Company (LTD) or a corporation, which makes them legally distinct from their owners.

Colorado Small Business Legal Checklist

The Startup Magazine

These can include: LLC (Limited Liability Company): An LLC is a legal entity for sole proprietors that gives a business entity a tax identification number and the ability to open a business bank account separately from a personal bank account. Liability.

How To Maximize A Real Estate Investment

YoungUpstarts

The best way to protect your assets is with a holding real estate investment, such as a limited liability company or limited partnership. A little research can help you enjoy a fantastic return on investment whilst limiting your overheads.

8 Reasons To Incorporate Your New Company Early

Startup Professionals Musings

Many entrepreneurs are so focused on finalizing their innovative product or service that they procrastinate on the formalities of forming the requisite new company until later. Liability for initial setbacks or lawsuits needs to business versus personal.

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Top Legal Concerns for Mobile Application Startups

Early Growth Financial Services

Ryan Azlein, Partner with Stubbs Alderton & Markiles LLP, addresses three of the most pressing legal concerns for founders of mobile application companies. Typically the choice will be between a limited liability company or corporation, but in some cases a partnership may be appropriate. The determination should be based on consideration of tax issues, corporate governance, limitation of liability and other factors.

Even Social Entrepreneurs Need Profit to Meet Goals

Startup Professionals Musings

For comparison, I was able to set up a simple for-profit Limited Liability Company (LLC) in a month for less than $100. Thus non-profit businesses have a very limited ability to survive when needs and interests of consumers change.

Tips For Getting Your Small Business Off To A Great Start

YoungUpstarts

Remember when composing your business plan , it is pertinent to include a mission statement, company summary, and an executive summary. Also, be sure to provide the reader with a breakdown of your company’s products and services.

Business Prenup: What To Do Before You Start A Company With A Partner

YoungUpstarts

For example, an attorney can assist with issues concerning corporate formation (such as the pros and cons of corporations, limited liability companies and other structures) that may impact liability. Protect your company’s customers, employees and intellectual property.

Five signs it’s time to get your business organized

VC Ready Blog

All entrepreneurs face the question: “when should I form a company?” Forming a corporation or limited liability company not only protects founders by limiting personal liability for activities related to the business, it also defines the rights of founders relative to each other and to the business, which is important in case there is ever a falling-out among the founders.

Five signs it’s time to get your business organized

VC Ready Blog

All entrepreneurs face the question: “when should I form a company?” Forming a corporation or limited liability company not only protects founders by limiting personal liability for activities related to the business, it also defines the rights of founders relative to each other and to the business, which is important in case there is ever a falling-out among the founders.

Five signs it’s time to get your business organized

VC Ready Blog

All entrepreneurs face the question: “when should I form a company?” Forming a corporation or limited liability company not only protects founders by limiting personal liability for activities related to the business, it also defines the rights of founders relative to each other and to the business, which is important in case there is ever a falling-out among the founders.

What to Do If Your Accountant Makes an Error

Up and Running

As the business owner, you may incur liabilities or suffer losses that stem from an accountant’s negligence. Choice of entity (C corporation, S corporation, or a limited liability company ) may affect how the company’s earnings will be taxed and how your assets are protected.

What is a Social Enterprise?

Up and Running

Nonprofits are certainly social enterprises, but many for-profit companies fall into this category by making the conscious decision to have their focus be an altruistic cause, rather than the maximization of profits. For-Profit Entities: L3Cs, or Low-Profit Limited Liability Company.

With New 21 Percent Corporate Tax Rate, S-Corps Are Taking A Second Look At C-Corp Status

YoungUpstarts

In fact, in crunching the numbers, our research reveals that commercial enterprises, such as manufacturers, distributors, and service companies, may actually end up with a larger tax liability after switching to C-Corp status. There are two key limitations to consider.

LLC Advantages and Disadvantages

Blogtrepreneur | Entrepreneur Blog

An LLC or limited liability company is a business form that is a hybrid of a sole proprietorship or partnership and a corporation. In addition, there are limitations on the types of businesses that can form LLCs. These limitations vary from state to state.

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New Tech Start-Ups Formed In 2011 Should Consider LLC Format, At Least Initially

Recent Buzzes - VC Experts, Inc.

It is often said that any new start-up business that is planning on raising equity investments from the private equity/venture capital (PE/VC) world generally needs to organize themselves as a corporation, rather than as a limited liability company (LLC).

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Starting Up Your Business: First Steps

Up and Running

Before requesting funding for your business you will need to establish what legal structure is right for your company—are you a sole trader, limited liability company or a partnership? For more information on setting up as a limited liability company click here.

Why You Won't Like the Single Obama Budget Proposal That Might Just Pass

Inc Startups

Both of the plans have a provision that says S corporations [partnerships and limited liability companies] would need to conform to the self-employment tax that sole proprietors now pay," says Kyle Pomerleau, an economist at the Tax Foundation, a nonpartisan tax-policy think tank in Washington, D.C.

Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

One of the first actions you will take with your startup is to organize your company a separate legal entity to protect yourself from personal liability for the company’s debts. Stocks are issued at the time the company is formed, and more can be issued over time.

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How To Build The Credit Rating Of A New Company

YoungUpstarts

Establishing the business credit of a new company can be extremely difficult. Therefore, taking steps from the launch of your company to establish a positive credit rating is imperative.

Turn Your Blog Into a Business: A Legal Perspective

Blogtrepreneur | Entrepreneur Blog

You need to protect yourself by creating a company. Protecting Yourself with a Company A company provides limited liability protection for its owner. That means that you can only lose as much money as you have in the company.

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The Structures of Social Enterprise

Business Plan Blog

We are beginning to see more and more companies begin to blend their traditional corporate structures with a more modern obligation to philanthropy and social awareness. Required annual reports provide transparency to the public and accountability toward the company.

How to Minimize the Red Tape and Taxes of a Startup

Startup Professionals Musings

One of the first questions that I get from many entrepreneurs is “How should I set up my company to minimize my setup costs, tax liabilities, and risk of lawsuits?” Each of the other three has the great legal advantage of limiting liability to the entity, preserving personal assets.

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Ideas And Tips On How To Start A Home Business

YoungUpstarts

The options are sole proprietorship, partnership, corporation or Limited Liability Company. Did you know that many of the entrepreneurs when they start their business, they decide to turn their home into an office?

Overview of the Types of Non-Profits

Business Plan Blog

The main reason that a non-profit chooses to incorporate is to protect the management from personal liability from lawsuits or debt. Another option for your non-profit is to form a limited liability company (LLC).

Debt Or Equity To Fund Your Start-up: Which Is Better?

YoungUpstarts

If you set up as a limited liability company, the business suffers the credit damage, but your future earnings are stifled. People who invest money in the company often do not take such a hands-off approach. By Jenny Q. Ta , entrepreneur, author and CEO of Sqeeqee.com.

8 Tips for Starting a Home-Based Business

Up and Running

However, depending on the type of business you are in, you may want to consider other possibilities such as an Limited Liability Company (LLC), or a Sub-S status corporation. In the past, home-based businesses weren’t taken seriously.

Starting Your Business The Right Way

YoungUpstarts

There are also financial benefits like access to business loans, business bank accounts, and tax incentives, as well as legal benefits like limiting your personal liability. Another option for someone looking to control their own business is establishing a Limited Liability Company.