The Launch Blog

How does a Limited Liability Company (LLC) owner withdraw money from their business? Whether these funds are for personal use or it is considered compensation from the LLC, how they may do that depends on three things: Whether the Limited Liability Company is a single-member LLC or multi-member LLC How the LLC is treated for tax purposes Whether the LLC member actively works in the business As with all other legal and tax aspects of operating a business entity, it’s important to withdraw money from an LLC correctly. Getting guidance from an accounting professional will help ensure you...

IRS Form 2553 (Election by a Small Business Corporation) is the form that a corporation (or other entity eligible to be treated as a corporation) files to be treated as an S corporation for federal tax purposes. The IRS has specific criteria that entities must meet to qualify for the S Corporation election. Here’s an overview of their requirements: Must be a domestic corporation or a domestic entity eligible to elect to be treated as a corporation Must timely file Form 2553 Must have no more than 100 shareholders (or LLC members). Shareholders are individuals, estates, exempt...

An LLC executor is a designated person or business entity that an LLC’s members appoint to handle certain legal and tax-related aspects of their business at various stages of its existence. An executor might assist LLC members through the business formation process, helping to complete and file the required paperwork with the Secretary of State office and other agencies. LLC members might also rely on the executor to prepare and file business compliance filings necessary to keep the LLC In good standing with the state. After a member dies or LLC members decide to close their company, an...

With autumn approaching, many entrepreneurs and other professionals with school-age children face a double dose of challenges. Back to school brings break-neck fall schedules packed with events and extracurricular activities that demand parents’ time. And as kids adjust to the new norm, adults must play catch up professionally as they take stock of the business responsibilities they may have put on the back burner during the summer. Below are some tips to help you and your family survive and thrive while working through the transition. Back to Business 1. Time to Focus If you’re an...

The owner of a Limited Liability Company (LLC) or Corporation might consider being their own registered agent since it eliminates the cost of contracting another party to accept service of process and other official notifications on the business’s behalf. However, while legally you may be allowed to be your own registered agent, it’s likely not the best option. Why? Let’s talk about a registered agent’s responsibilities and the valid reasons for entrusting those duties to a commercial registered agent rather than taking them on yourself. What Does a Registered Agent Do? A registered agent...

If you’re a foreign entrepreneur wishing to start a business in the United States, I expect you may have many questions about the process. Non-citizens can own a U.S-based Limited Liability Company (LLC) or C Corporation, and like U.S. residents, non-resident business owners must comply with federal, state, and local rules and regulations to legally form and operate a business entity. Among those requirements is designating a registered agent in the state where the foreign owner registers their company and other states where it will conduct business. What Does a Registered Agent Do? A...

A corporate resolution is a formal record of a corporation's board of directors' decisions and actions on behalf of the company. States require incorporated companies to use corporate resolutions for recording major business decisions. The company's board of directors must vote to approve resolutions either during board meetings or in writing. 

The BOC-3 federal filing designates process agents to accept legal documents on behalf of transportation companies. The process agent company must list the process agents in all other states where the company conducts business.

Some companies, such as Limited Liability Companies (LLC), choose to do business under a different name than the one they have registered in their formation documents. Like other businesses, before an LLC may use an alternate name in its contracts, advertising, and customer interactions, it must complete a Doing Business As (DBA) filing to register the name. Fortunately, it’s not difficult to add a DBA to an LLC. Anatomy of a Doing Business As (DBA) A DBA legally allows an LLC to use a different name to conduct business. Other terms that states use when referring to a DBA include...

No matter which state your Limited Liability Company (LLC) is located in, you will need to file documentation with the Secretary of State to establish your company and keep it legally compliant. A Statement of Information is one of the standard reporting requirements that many LLCs across the United States must adhere to. A state may require a Statement of Information as an "Initial Report," due shortly after registering a business. Many states will also mandate LLCs to submit a Statement of Information (sometimes called an "Annual Report") each year, every other year, or on some...

When someone sues an LLC, the procedure of delivering the legal paperwork that initiates the lawsuit and allows it to proceed is referred to as service of process. Service of process notifies the LLC of the lawsuit, and it establishes that the court hearing the lawsuit has jurisdiction to do so. The U.S. Constitution’s Due Process clauses in the Fifth and Fourteenth Amendments prevent courts from exercising jurisdiction over a defendant unless proper notice is given, which makes service of process immensely important. Service of process commonly involves the following legal documents:...

As a serial entrepreneur with a heart for helping other entrepreneurs, it pains me to see business owners misled by registered agent services providers who offer bargain basement prices. These low-priced registered agents focus on offering the cheapest price possible and they do this by limiting services and hiding incremental fees. They lack customer support, have limited service capabilities, and have inadequate expertise to address customer questions and issues. And at the end of the day, this low-priced service usually comes at the buyer’s expense. Unfortunately, many new small...

Whether you sell products or services in one state or many states, it’s imperative to understand your business’s sales tax compliance requirements. To correctly register a business in a state and then file the proper sales tax, you need to know the difference between sales tax and sellers use tax and how nexus affects your obligations. Sales Tax Sales tax is a transaction tax paid by a consumer for a product or service and is a percentage of the sales price. Although not all states charge a sales tax, it is the seller’s responsibility to know which states do, to collect the sales tax, and...

It's an understatement to say the last few years have been tumultuous. Nearly every business has felt the pandemic's economic effects, and many have faced natural disasters such as hurricanes, tornadoes, draughts, and wildfires. With CorpNet's location in southern California, I relate first-hand to the challenges that entrepreneurs have faced. Our office has closed due to wildfires and COVID-19. Fortunately, we have a small business disaster recovery plan in place that has enabled us to continue our operations without sacrificing the quality of our customer service or our ability to meet...