Want to Trim Some Fat? Get Your Arms Around Your Entities
March 25, 2009
In every business, large and small, entrepreneurs and managers are focused on trimming costs. We recently posted an article on how LLC owners can consider some restructuring to reduce their California taxes. Read more
Do I need to file a fictitious business name statement (DBA)?
March 25, 2009
Companies and individuals create fictitious business names (DBAs) so that they can operate under a name other than their legal name or use more than one name for business purposes. Using alternate names for business is acceptable as long as a fictitious business name statement is filed with the county, city, or state depending on local requirements. A DBA allows corporations and individuals to receive and process checks in the fictitious business name, in addition to the corporate name or individual name. Because DBAs must be filed in multiple locations (e.g., each County where a company is doing business in California) and renewed regularly (every 5 years in California), the better approach is to avoid the need to file a DBA by incorporating using a corporate name that the company will actually use in conducting its business
Do I have to pay federal taxes on a nonprofit corporation?
March 25, 2009
Corporations that qualify under 501(c)(3) of the internal revenue code are tax-exempt, meaning they are not taxed by the federal government. In addition, those who donate to a qualified nonprofit corporation can take a tax deduction for any donations they make to the nonprofit corporation.
Why in the World Would Anyone Incorporate in New York?
March 25, 2009
One of the primary advantages of incorporating a small business is the protection that the corporate form gives to shareholders’ personal assets. In New York, however, this general rule is subject to a significant exception. Under N.Y. Bus. Corp. L. §630, the ten largest shareholders in any non-public company (except for investment companies) can be held liable for wage claims made by corporate employees. All types of compensation are covered by the statute, including (but not limited to) salaries, overtime, vacation, holiday and severance pay; employer contributions to or payments of insurance or welfare benefits; employer contributions to pension or annuity funds. Read more
California Cracks Down on Deadbeat LLCs
March 25, 2009
Prior to 2009, California did not impose any suspension or forfeiture penalties for LLCs that failed to pay their annual franchise tax, any associated penalties, interest, of failure to file a return. Consequently, unlike corporations, LLCs were able to continue to operate without consequence for not following the statutory tax prescription.That has all changed. Read more
Debunking the Myth of LLC Poison Pills
March 25, 2009
The celebrated psychologist Sy Kosis is sued for malpractice. After a trial, Sy’s patient has a $1 million uninsured judgment against him and then begins turning over every stone to find Dr. Kosis’ assets. It turns out that Sy owns a 25% interest in a LLC that owns an apartment building. Can the creditor grab Sy’s interest in the LLC? Read more
Do Single Member LLCs Provide Limited Liability Protection?
March 25, 2009
One of the single most important reasons why people form business entities is liability protection. In the eyes of the law, single member limited liability companies, despite having only one member, provide the exact same protection as limited liability companies with more than one member. Read more
LLCs Ain’t For Everyone
March 25, 2009
Not all types of business ventures are created equally in California. A California LLC or a foreign LLC registered to do business in California may not engage in a business which is registered, licensed or certified. Accordingly, professional LLCs are prohibited in California. Read more
Series LLCs – Better Choices Available
March 25, 2009
What is a Series LLC? A Series LLC is a LLC just like any other LLC, but the Operating Agreement of a Series LLC creates separate “series” of assets that are partitioned and protected from other assets held by the LLC. The idea is that the liability of each asset owned by the LLC is only enforceable only against the assets that are held in the same “series”. Read more
Theatrical Production LLCs and the New York Publication Requirement
March 25, 2009
New York requires that all domestic and foreign limited liability companies and limited partnerships publish a copy of the articles of organization or a notice related to the formation of the company in two newspapers. Read more
