Limited Liability Company

What is a limited liability company? Why should a small businessman or entrepreneur choose this entity status over others?  A limited liability company is similar to partnerships except it has preferred legal protection for the respective owners under law.

Forms of Business Ownership

Forms of Business Ownership

When an entrepreneur starts out on his/her long journey of building a legacy with his business; he/she almost immediately focuses on the legal status of his business. Thoughts include: ‘Should I become a limited liability company or an S-Corporation?’;  ‘What if I take on partners?’; ‘How do I get more capital without giving up control?’ 

Estimated Tax Payments – Why and How

Estimated Taxes

In the normal taxpayer relationship with the Internal Revenue Service, the taxpayer is an employee and via withholding, taxes are paid the U.S. Government by the employer. Basically the employer pays the tax after each payroll run on behalf of all the employees and the corresponding mandated matching taxes (Social Security and Medicare). But in the small business world, this is not the normal relationship.

Limited Liability Company – Step By Step Setup

Limited Liability Company

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 processes have several steps involved. This article guides the entrepreneur through each of the steps to create a Limited Liability Company. 

Partnership Agreements – Terminology

Partnership Agreements

Each of us has our own built in dictionary for terms we hear in our business lives. I find it fascinating that the standard business term ‘Equity’ is interpreted differently within the business world. I often interpret the term using the Internal Revenue Service definition because my background is in taxation. Lawyers use this term to mean ownership and not necessarily financial driven. Bankers convert this term to capital and the associated relationships to debt.

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