How To Choose The Best Legal Structure For Your Business

The Startup Magazine

If you’re looking to set up a business, it’s in your best interest to know what the most economically friendly legal structure for your potential company should be. Depending on which state your business opens in, different tax laws will apply to your company.

Why Entrepreneurs Must Learn to Love Paperwork  

The Startup Magazine

There will be plenty of it early and often during your entrepreneurial journey, but rather than look at it as a headache you should consider the many ways in which it will help protect you, your family, and the company as a whole. Personal asset liability protection is not ironclad.

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What It Takes to Start a Real Estate Brokerage

The Startup Magazine

The market for real estate companies and individual entrepreneurs is also vast, comprising 5.6 Successful entrepreneurs will tell you that any company without a business plan is like a fish without water. The legal structure of your brokerage matters as it determines your ownership, taxation, and financial liability. Starting a real estate brokerage is every realtor’s dream, but what does it look like in reality? The industry is enormous and very competitive.

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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Wind Farm Business: Startup Considerations

The Startup Magazine

The competition in this field of business goes beyond just wind farming companies and includes every producer in the electrical power industry, especially those that generate it from renewable sources. In addition, don’t limit your costs only to registering your business, licences, leasing and equipment – you’ll also need to invest in branding and building your customer base.

A Brief Guide to Creating a Startup

The Startup Magazine

And as you may know, there is much more to consider in terms of actually building a company that will be successful. This business plan should include a name for your business that is eye catching, memorable, and represents your company message. These individuals share responsibility for decision-making, liability, and profit. Corporation or S-Corporation: A company owned by many individuals which operates under written permissions from the state in which it is located.

How to Put Personal Money into Your Startup In 6 Steps

The Startup Magazine

Failure to do so might leave you liable to tax and accounting liabilities. A limited liability company status, for instance, will protect you from your business’s legal hurdles and their costs too. Without the protection, the legal status grants your company, all you own in and out of your trade pursuit is a sitting duck waiting for the worst to happen.

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. Thus far, he has managed and operated multiple companies that attained enough success to serve as conversation-starting topics for other entrepreneurs.

How to Start Your Own Healthcare Service

The Startup Magazine

This type of business has significant liability and compliance requirements. If you don’t get the proper advice on how to set up your business, you will not be prepared if you’re ever sued or faced with a liability claim.

Incorporating Your Business: Tips to Follow

The Startup Magazine

Still, the process of incorporating a company has to be one of the most complicated things for startup owners to handle. In this sense, you have the choice between a limited liability company or LLC, or a C-Corporation.

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. You don’t need a huge company, lots of employees, or anyone but yourself (except in Massachusetts, where you need to have two owners). Liability protection. An LLC shields you from liability for the company’s business debts and claims.

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How to Start a Real Estate LLC – What You Need to Know

The Startup Magazine

For a real estate entrepreneur, a Limited Liability Company (LLC) is a great way to protect your personal property from seizure due to liability claims. It can be a member, an attorney or a service company.

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3 Tips for Keeping Your Business in Compliance With the State

Up and Running

If your company gets served, by having an outside service in place, the papers will be delivered to that office instead of your storefront where all your customers and employees can see the exchange. Limited Liability Company, Incorporation, or Inc.

Should I Hire An Attorney When Starting A Business?

YoungUpstarts

A business attorney can guide you whether you want to set up a corporation, a limited liability company (LLC), a partnership, or a sole proprietorship. You are an innovator and a job creator. You want to start a new business.

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How a DBA May Help Take Your Business to The Next Level

The Startup Magazine

Limited liability companies and corporations. Important fact: DBA’s do not provide liability protection for informal business structures. . Limited liability companies and corporations.

An In-Depth Look At Business Credit

YoungUpstarts

The first two companies also provide business credits. However, the most well-known company dealing with business reporting is Dun & Bradstreet. Experts advocate for a limited liability company, which will save you lots of headaches when it comes to taxes and guarding your assets.

Startups: What Kind of Entity Should You Form?

SiliconHills

By SUSAN LAHEY Reporter with Silicon Hills News For most startups there are two ways to go in deciding what kind of business entity you should form: A limited liability company, or a Delaware Corporation, according to David Valenti, a partner with Reed & Scardino.

Does A Business Bankruptcy Hurt My Personal Credit?

YoungUpstarts

A business owner is the face and backbone of the company. There are three situations you could be in as the head of a company, and some have a brighter outlook than others. Limited Partner. This category is going to cover limited liability companies and corporations, as well as limited partnerships. In this scenario, it’s not a great idea to file for bankruptcy, but you’re mostly free of liability if it happens.

A Guide To Starting A Business In Los Angeles

YoungUpstarts

In the serviced apartment and corporate housing space, take a look at companies like Blueground. The options are a sole proprietorship, a general partnership, a limited partnership, a limited liability company (LLC) and corporations (S, C and professional corporations).

What Kind Of Company Should You Create?

YoungUpstarts

When you add in legal considerations such as assets, debt liability, and intellectual property (IP) protection it becomes clear that you have a lot to think about before making the choice that’s right for you. If you’ve ever done any contract work and didn’t bother to register your company, you still were acting as a company that was considered a sole proprietorship. Limited Liability Company (LLC). Limited Liability Partnership (LLP).

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3 Things Every Entrepreneur Must Do Before Starting An LLC

YoungUpstarts

There are plenty of things you can and should do before starting your Limited Liability Company (LLC), but here are three big recommendations to keep in mind. by Dustin Ray of Incfile. Maybe you woke up one day and decided to start a business on a whim.

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5 Keys To Mitigating New Venture Tax And Legal Issues

Startup Professionals Musings

A frequent concern I hear from aspiring entrepreneurs is “I have invented a great product, but I have no idea where to start in setting up a company, to avoid all the tax and legal problems I hear about on the news.” The primary business entity options include a sole proprietorship, Limited Liability Company (LLC), or a Corporation (B-Corp, C-Corp, or S-Corp). Many entrepreneurs follow old shoebox habits in managing expenses until the company launches.

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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. All profits and losses and liabilities are tied to the sole proprietor or business owner personally. Tony Smith is Managing Director at Company Debt.

What Type Of Insurance Does Your Business Need?

YoungUpstarts

Think about the type of work you do and the nature of risks your company faces most of the time. The owner of the company encounters unlimited liabilities. The partners share the profits of the company amongst themselves based on their agreements. There’s a general partnership where all partners have unlimited liabilities. On the other hand, there is also a limited partnership where creditors cannot seek after the personal assets of the limited partners.

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. You are still liable for taxes and, because the government does not distinguish between you and your business, you are also liable for all business losses, liabilities and debts. Like a sole proprietorship, all partners share liability. Choosing a business structure – don’t just consider how you will pay yourself, consider your liability.

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. In the tech startup context, you’ll typically choose between a Corporation and a Limited Liability Company (“LLC”). Stocks are issued at the time the company is formed, and more can be issued over time. Then the Directors elect Officers who actually manage the company.

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 7 Steps To Starting A Construction Company

YoungUpstarts

Starting a construction company has some great benefits. With this in mind, here are the 7 steps to starting a construction company. A business plan is an essential tool for any entrepreneur looking to start their own company. Starting a construction company is not cheap.

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. Every real estate investor wants to minimize their overheads whilst maximizing the price of their property. While this might seem like an uphill challenge, it can be easier than you think.

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. A low-profit limited liability company, or an L3C, is a legal structure (a variation on a limited liability company or LLC) that is relatively new to the United States. The United Kingdom began using a similar structure in 2005, called a Community Interest Company.

How To Start Your Own Small Business In 7 Easy Steps

YoungUpstarts

A lot of small startups fail in the first year, and it can be very difficult for new businesses to develop their identity and to stand out from other more developed companies. You should also take into consideration a domain name that goes with your business name and check to see if there is a URL available for you to develop a company website. You can either create a small business that is a corporation, a limited liability company (LLC), or a sole proprietorship.

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. Not sure how to go about building the credit rating of a new company in order to establish it as a reputable place of business? When establishing your business, you want to be certain that you register it as a limited liability company, which is known as an LLC for short, or as a corporation.

How To Start A Real Estate Investing Business

YoungUpstarts

If you choose the latter, you are most likely going to buy homes on an as-is basis like what companies such as Fair Cash Deal do, and sell it at a higher price after making significant improvements and adding certain amenities. Keep in mind, however, that most real estate investment businesses are set up as limited liability companies or LLCs. Click here for an example of a company that purchases homes in any condition for a fair cash price.

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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? In order for your business to start with the right foot from offices installed in your house we share the following recommendations: Define a space for your office. Empty the space you will use as your office, as you need to avoid distractions.

The First 5 Steps To Starting Your Own Business

YoungUpstarts

Lay out all of the fine details, including your branding, the company’s identity and ethos, merchandising, employee structure, financials, etc. Incfile helps you easily compare and contrast the different business entity types , such as a limited liability company vs. an S Corporation vs. a nonprofit. by Dustin Ray of Incfile. The hardest part of any important task is getting started on it in the first place.

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. Should you form a corporation, partnership or a limited liability company? After you’ve made your decision, you will need to register your company accordingly.

Think ahead when raising your early investments

Berkonomics

First, VC’s in general cannot invest in ‘S’ corporations or limited liability companies (LLC’s). More importantly, VC’s will worry over several issues when looking at a company and deciding about an investment. First: Is the price paid for shares by previous investors excessive, creating a post-money valuation too high for the actual value of the company? Some businesses just can’t fit within the angel capital or friends and family model for raising funds.

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. If you prefer complete autonomy in company decisions, equity investment is not the right move. A valuable expert who has money on the line may become a huge asset to the growth of the company. By Jenny Q.

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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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How to Convert Your Business to an LLC

The Startup Magazine

This would lead them into choosing ownership between a sole proprietorship status and a limited liabilities company or LLC status. Legal insight Bankruptcy capital debt Finance grants Income tax IRS legal licenses Limited Liability Corporation LLC Organization shareholders Sole proprietorship taxesAs your startup grows, you become more aware of the legal restrictions that are putting pressure on your bottom line.

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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. It’s very easy and inexpensive to set up online a Limited Liability Company (LLC) for the startup, which will allow you to track business costs, cash and taxes correctly -- no matter what happens. Liability for initial setbacks or lawsuits needs to business versus personal.

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How to Separate Your Small Business and Personal Finances

Up and Running

This will allow you to create a separate credit file under your business’s name and limit the liability of the business owner. There are several different business structures that incorporate your business (for example C corp, S corp, or limited liability company), so make sure to investigate which structure best suits your business needs. Act as if a company is paying you a salary, and budget accordingly.

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. If you stop working for the company, how will that impact your voting and distribution rights? If the company is owned 50/50, consider a tie-breaker provision that involves a third party. Protect your company’s customers, employees and intellectual property.

How To Start A Consulting Business

YoungUpstarts

Here’s how Mandi Ellefson, CEO of The Hands-Off CEO , started her consulting business: I had a design company where we did branding and web design. It was dependent on me and I really wanted this company to be generating income without me. And as a result, I sold my company and started a consulting business to help others do the same thing. Your company name, your company logo , and your website design should all grow from the concepts you laid out here.

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