Liability

on taxes can be easier said than done, because the tax code is expensive. There are some common ways, however, that a lot of small business overpay on taxes. Choosing the Wrong Business Entity Can Increase Your Tax Liability The two main business structures, a limited liability company(LLC) and a corporation both have unique tax, legal and financial implications. The right way…

of the corporation. Corporations pay a different tax rate then companies and individuals. A limited liability company (LLC) does not have stockholders, it is comprised of members that have an interest in the company but do not have any personal liability if the company were to be sued. A LLC must file an Articles of Organization with the Secretary of State in order to become a limited liability company. A sole proprietorship is a business that one person owns. They are personally liable for…

Our first #AskVic question is, can a member of a LLC receive a salary for their services? A Limited Liability Company (LLC) is an entity type that is formed at the State level. If the LLC only has one member, then it is called a single member LLC (SMLLC), which is a "disregarded enity," meaning that the Internal Revenue Service (IRS) does not recognize it as a separate entity, and the member would need to file a Schedule C on their personal tax return to report the income and expense activity…

LIMITED LIABILITY COMPANY Like a corporation, a limited liability company upholds limited liability features. It also ensures pass-through taxation and flexibility of partnerships in its operations LLC owners are referred to us ‘members’. A member can be a single person (owner), two or more persons, corporations and other LLCs The LLC members file federal tax return for facilitation of taxes unlike shareholders of corporations. This is due to the fact that LLCs are not regarded as separate…

Corporation is a business separated from its owners. Corporations can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes. Advantages of a corporation is it is a limited liability that protects owners from losing more than they invest. The business can achieve large sizes due to marketability of stocks. It receives certain tax advantages. Has greater access to financial resources allows growth within the company. Attracts employees with specialized…

There are many different types of business to consider when an individual starts their own business. The three main types are a Sole Proprietorship, Corporation and a Limited Liability Company. There are also many areas of business that an individual could pursue. Personally, if I could open my dream business it would be an equine (horse) boarding business ran by my husband and I. This business would involve the boarding of horses for extended periods, giving them quality care while their…

Because of Pete’s fear of “going it alone,” we can take sole proprietorship out of the equation. I would advise Pete to choose the limited liability partnership. Primarily because it is pretty much just a partnership expect that an LLP partner has no liability for most LLP obligations, however, an LLP partner retains unlimited liability for his own wrongful acts. In addition, it is the preferred form of business for professionals (pg. 956). As an LLP, Pete gets exactly what he wants. Pete and…

current economic environment the best option for the formation of her company is that of a Limited Liability Company, or LLC. This is because it offers the pass-through tax status and the safety of liability protection of a corporation. This would allow her to only be taxed once like a sole propriety or a partnership, which helps small-business owners keep their earnings. However, remove the personal liability as any action against the business can only act against the business and not Shania…

BCS/CD-700 Michigan Limited Liability Company Form Form BCS/CD-700 Michigan Limited Liability Company carries articles necessary for the formation of Limited Liability Company in the Michigan State. The form has 5 articles governing various features. Filing duly completed form with the Bureau of Commercial Services is necessary for its execution. However, it attracts filing fees of $50. Expedited review and filing facilities are available at higher filing fees. The document is stored…

1.0 Company Description 1.1 Legal Form of Business Power Hour Fitness will be a Limited Liability Company (LLC) consisting of three members, Nicole Bauman, Salena Kreitler, and Kelsey Schmidt. This form of business will provide a great advantage for Power Hour Fitness as it is a hybrid of certain features of a corporation and a partnership. As a Limited Liability Company, the three associates avoid major risks such as within a partnership where partners are responsible for all debts. Instead,…