Limited Liability Company (LLC)

Pet Groomer

Beyond the Hype: Demystifying LLCs and Unpacking Their Challenges

Before Starting a Small Business / ,

For Years, Entrepreneurs Have Been Inundated With the Notion That Limited Liability Companies (LLCs) Are the Go-To Choice for Small Businesses. We Argue That LLCs Are Oversold and Their Management Underrated and Critique the Widespread Endorsement of LLCs For Small Businesses, Highlighting Potential Shortcomings in Liability Protection, Flexibility, and Simplicity.

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Playing Dr. PLLC - State Licensing Board

What You Need to Know About State Licensing Boards and Creating a PLLC

Small Business Regulatory and Compliance Issues / ,

If your industry requires practitioners to be licensed by a state licensing board then you likely cannot organize as an LLC because you are considered a professional service company. You can however register as a Professional Limited Liability Company (PLLC) which is a bit different.

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LLC IRS Audit

How to Know If Your LLC Is Compliant with IRS Rules?

Concepts Entrepreneurs Need to Know / ,

Paying Taxes at The Corporate Level Is Undesirable for Most Small Businesses, So the LLC Was Born. To Avoid Being Considered A Corporation by The IRS, You Can’t Look Like One. There Are Four Selectable Characteristics that Are Common to Corporations. As an LLC, You Can Only Pick Two Of The Four.

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Critical Formation Errors that Will Destroy Your Business

Critical Formation Errors that Will Destroy Your Business

Small Business Regulatory and Compliance Issues / , , , , ,

There are a number of common mistakes many founders make that can destroy everything they worked so hard to achieve. Most occur when there is some business success. Some mistakes are made out of ignorance during the initial filing process with the Secretary of State and others are the result of failing to finish the process.

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Non-member general manager

How to Pay a Non-Member General Manager of a Multi-Member LLC

Small Business Regulatory and Compliance Issues, Small Business Finances / , ,

In some cases, all the members of an LLC may be investors only and not managers. The business may hire an outside general manager (employee) to make the day-to-day decisions, and therefore, acts as the manager. In this case, the general manager is an employee of the business, but since they are not a member (aka owner), their income is just like that of an employee in any business.

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Non Manager Member

How to Pay a Non-Manager Member of a Multi-Member LLC

Small Business Finances, Small Business Regulatory and Compliance Issues / , ,

When you have an investor in your LLC, who works less than 500 hours in a given tax year for the LLC, and they do not participate in its management, they are considered limited in their liability and their income is usually considered passive income subjecting the income to only federal and state income taxes based on their marginal tax rate.

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Get Paid Limited Liability Company LLC

How to Get Paid in a Multi-Member LLC

Small Business Regulatory and Compliance Issues, Small Business Finances / , ,

A member in an LLC that is a decision-maker (manager) is considered an employee of the business by the IRS and is treated differently than non-manager members. Income for managers is considered earned income and is subject to additional taxes but also to additional potential tax deductions. Moreover, as a manager, you are exposed to additional liabilities.

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Get Paid as Sole Proprietor or single member LLC

How to Get Paid as an Owner of a Sole Proprietor or Single-Member LLC

Small Business Finances, Small Business Regulatory and Compliance Issues / , , , , ,

As a sole proprietor or as a single-member LLC you are the only owner, and as a result, you do not take a salary or a wage from a business. Instead, you can simply take out excess cash from the business, which is known as an owner draw, to pay yourself.

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