In most states, professionals, such as attorneys, doctors, optometrists, certified public accountants, architects, psychologists, and psychiatrists, have fewer choices when it comes to selecting a legal structure for their businesses. Legal entities (such as corporations and Professional Corporations) and the rules that govern them vary state-by-state, so it’s crucial to understand what you need to do to protect your professional company.
Startup and Launch
By far, sole proprietorships are the most popular form of business ownership. Starting your entrepreneurial journey as a sole proprietorship is also the easiest route for a startup business owner to take as the paperwork and compliance requirements are minimal. However, there are risks inherent in this type of legal structure, too.
Here’s what you need to know about sole proprietorships.
What is a Sole Proprietorship?
By default, states consider a single-owner business (or a married couple who co-own a business) to be a sole proprietorship unless the owner or owners register the business […]
A pass-through entity refers to a business that does not pay income tax of its own. Its income, losses, credits, and deductions “pass-through” to each business owner’s personal tax return, where its profits are taxed according to each owner’s individual income tax rate. Sole proprietorships, general partnerships, limited partnerships, limited liability partnerships, limited liability companies, and S Corporations are all pass-through entities. Corporations, and limited liability companies that elect to be taxed as a corporation, are not pass-through entities.
Many entrepreneurs choose pass-through business structures for various reasons, including their relative tax-filing ease […]
I regularly speak to business owners about entity types and their potential impact from a tax perspective. A while back, I created a webinar for accountants (and other professional services providers that work with businesses) on the topic of business structures and taxes. It is focused on the possible tax advantages and disadvantages of C Corporations, S Corporations, and Limited Liability Companies (LLCs). In this article, I’ll break down the important considerations that I discussed in that presentation.
- Benefits of Business Incorporation
- Overview of the C Corporation, S […]
How many times have you heard about a new business idea and said to yourself, “I wish I’d thought of that!”? We’ve all been there. But business ideas don’t just spring up out of the blue. Most successful business concepts are a result of months (or years) of thorough market research, financial considerations, and fine-tuning the idea.
Today, when consumers have so many options at their fingertips, a generic business idea has little chance of survival. If you want to build a unique business, you need to narrow your focus and look for […]
Excited to start your new business in the coming year? Whether you’re forming your company as a sole proprietorship or a Limited Liability Company (LLC), promoting a new business takes strategizing and fresh ideas. Otherwise, it’s challenging to get your new business noticed. Here are 10 ways to promote a new small business in 2021.
Not to be overdramatic, but your business’s name could mean the difference between failure and success. You want to pick a name that not only tells consumers (whether B2B or B2C) what your company does […]
As a business owner, the day will come when you inevitably will have to address the legal aspects of your business – and the sooner the better. And, fortunately, the process can be relatively painless and hassle-free. I talk to countless small business owners and freelancers who consider themselves too small to worry about incorporation. After all, you don't have mazes of cubicles…you may not even have any employees. However, incorporation can still be a smart idea even for the self-employed graphic designer or wedding planner and in this post we discuss the benefits of incorporating your small business.
If you’re thinking about starting a business, you’ll want to research which business entity type will be most advantageous to you. As you go through that process, you will discover that various documents and filings need to be submitted to the state to form a limited liability company (LLC) or corporation. Articles of incorporation and articles of organization are among them.
Articles of Incorporation
Have you decided to operate your business as a Limited Liability Company (LLC)? If you answered yes, you must comply with your state’s requirements for registering your company. Those responsibilities include filing an articles of organization (sometimes called a certificate of organization or certificate of formation) with the state government.
The articles of organization is a legal document containing important information about the business. The Secretary of State office must approve the document for the LLC to be recognized as a legal entity.
Why Articles of Organization are Important for an LLC
Filing articles of […]
If you’ve decided to establish your business as a corporation, you’ll need to fulfill your state’s requirements for registering your company. Among those requirements is filing an “articles of incorporation” (sometimes called “certificate of incorporation”) with the state government. Articles of incorporation is a legal document containing important information about the company, and it must be approved by the Secretary of State office.
Why Articles of Incorporation are Important
Filing Articles of incorporation registers the company as a corporation (C Corporation) with the state. It makes the business a separate legal and tax-paying […]