Recent Articles

Corporation

Two types of corporations, first is the Regular C-Corporation and the second is the S-Corporation. Each has positive reasons to form your business into this type of entity. Learn the reasons and then choose the best status for your company.

Double Taxation – Not an Issue in Small Business

02/08/2017

In the world of big business corporate earnings are taxed twice under the Internal Revenue Code.   The first layer of taxation occurs with the traditional corporate income tax.   The second tier of taxation happens when dividends are issued to [...]

Forms of Business Ownership

01/04/2017

When an entrepreneur starts out on his long journey of building a legacy with his business; he almost immediately focuses on the legal status of his business.   His thoughts include:  ‘Should I become a limited liability company or an [...]

Corporate Documents – Introduction

12/29/2016

‘The job isn’t done until the paperwork is complete’, a popular axiom used especially in business.   It identifies with the requirement that every corporate entity maintain its legal status and understanding between all investors [...]

Business Trusts

12/21/2016

The common law definition of a business is an investment of capital or property by individuals which creates the means to carry on towards the goal of generating a profit.   Every state recognizes different legal formats to conduct business.   [...]

Treasury Stock

12/21/2015

Those corporations doing well and flush with cash sometimes buy back stock from their investors. Once purchased back by the company the stock is called treasury stock. In large corporations the buy back often involves a small percentage of [...]

Profit Shifting in Small Business – Internal Shifting

07/11/2015

Profit shifting in business is a term with two different interpretations.  The more modern use of profit shifting refers to large multinational U.S. based companies shifting their respective profits to other nations with a friendlier and lower [...]

Limited Liability Company – Step By Step Setup

01/17/2015

There is multi-step process to establish a Limited Liability Company (LLC).  You must first be recognized by the state of origin and then apply to the Internal Revenue Service to identify the particular tax entity arrangement.  Both recognition [...]

Dividends and Distributions –Use in the Proper Context

04/29/2014

Dividends and distributions refer to the payment of cash to investors.  So why two separate terms?  Well, the term is tied back to the type of entity that makes the payment.  Simply stated, regular corporations, i.e. C-Corporations as identified [...]

Why You Should Incorporate Your Business

03/19/2013

As a small business grows, there comes a time when the owner(s) should consider incorporating the business.  A corporation is a separate entity recognized by the state of domicile for the business.  It is as if a new life is created.  The state [...]
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