When starting a limited liability company or corporation, businesses in most states must provide a written statement of business purpose in their formation documents (articles of incorporation or articles of organization). The business purpose statement describes why, and for what legal purpose, will the LLC or corporation exist. This is not the same as a company’s mission or vision statement, which businesses often leverage when seeking financing, attracting customers, and rallying employee morale.

In most states’ articles of incorporation and articles of organization, the purpose statement is a brief explanation of what business […]

Most everyone could do with a little more cash these days, and a side hustle is a great way to keep your “day job” or core business and still make extra income. But what happens when your side hustle gains traction, and you want to make sure it is legally protected? When does the Internal Revenue Service (IRS) need to know? What about your state’s Secretary of State or Department of Revenue? Here’s what to know to keep your side hustle on the right side of the law.

Is Your Side Hustle a […]

Whether that name is legally registered with the business’s home state or not, every business has a legal name. A DBA (or “Doing Business As” is a name that is different from the legal name of the company. A DBA is also referred to as the “trade name,” “assumed business name,” or a “fictitious business name.”

A DBA lets the public know the true owner of a business. DBA laws are consumer protection laws. They exist, so consumers have full transparency on which companies they are transacting business with. In other words, […]

What is a Partnership?

A partnership is a formal legal entity where two or more parties agree to manage and operate a business and share its profits and losses. Like a sole proprietorship, each partner is responsible for the assets and liabilities of the company. However, in a partnership, the parties create a partnership agreement that dictates ownership, responsibilities, and decision-making authority. While there are no specific filing or registration formalities needed to start a partnership, partnerships must comply with the registration, filing, and tax requirements required of any business.

How Do I Know […]

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.

What is the Difference Between a Corporation and a Professional Corporation?

Business owners choose to incorporate their companies primarily for the personal liability protection it offers the owners and shareholders. In a

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.

Business Name

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 […]