The Launch Blog

Is it better to form a Limited Liability Company (LLC) or a C Corporation? Many entrepreneurs ask that question as they work through the many facets of transforming their dream of business ownership into a reality. The business structures have similarities and differences, as well as advantages and disadvantages, so it’s important to consider all of them when deciding on the right business entity type for your company. So, how do LLCs and Corporations compare? 1. State Registration Both LLCs and Corporations are formed by filing registration forms with the state. The paperwork required,...

Congratulations! You have officially registered your Limited Liability Company or Corporation with the state. But now what? What happens next? While forming an LLC or Corporation is a critical first step to operating a formal business entity, there's more work to do to keep it legitimate and in compliance. The tasks and filings vary depending on a company's growth objectives, type of business activities, and location. In this article, I talk about what comes after incorporation and I'll share some of the obligations that entrepreneurs must fulfill. However, keep in mind that your...

If you’re considering a Limited Liability Company (LLC) or Partnership as your company’s business structure, you’ll have many considerations to think about. Choosing a business entity type has ramifications legally, administratively, and financially—all of which can potentially have a significant impact. Rushing to a decision when weighing the pros and cons of an LLC vs. Partnership and making a poor choice can have big consequence. It’s critical to review your options carefully. An LLC may be owned by just one person (single-member LLC) or by multiple owners (multi-member LLC). By the...

If you're looking to start a cleaning business, there's plenty of opportunities to go around. In fact, the role of professional cleaning specialist is slated to be the fastest growing occupation for the next ten years. Whether you plan to buy an existing franchise cleaning service or go out on your on, there are a few things you need to take care of before you can start accepting clients. Get Licensed and Bonded - Whether you will be the sole cleaner of personal or commercial properties, or whether you plan to hire a team, you absolutely must be licensed and bonded. Your state may or may...

Once entrepreneurs taste what it's like to be their own boss and carve their own career path, some decide to pursue starting multiple businesses. Depending on the situation, owning multiple Limited Liability Companies (LLCs) might make sense. Which leads to the question, how many LLCs can someone have? The short answer is there are no particular limits on how many LLCs someone may form, provided they meet all of the eligibility criteria to be an LLC member and comply with all of the federal, state, and local government rules and regulations for operating an LLC. In this article, I’m going...

A profit share agreement, sometimes called a profit share contract, is an important legal contract between two or more parties, such as individual business partners, businesses, employers and employees, or investors and entrepreneurs. A profit share agreement is particularly important when two parties agree to undertake a joint venture as partners without creating a formal business entity, such as a C Corporation or Limited Liability Company (LLC). The agreement states how profits generated through a shared effort or project will be divided. It also details the responsibilities of each...

Sole Proprietorships and Limited Liability Companies (LLCs) are popular business entities for entrepreneurs. If you’re thinking about starting a business, you might be wondering which of these entities would be a better choice. Let’s look at how Sole Proprietorships and LLCs operate and consider some of the advantages and disadvantages of each business type to help you decide which is right for you. Highlights of the Two Business Structures When an individual (or married couple) starts a business, it is, by default, considered a Sole Proprietorship. Operating as a sole proprietorship...

So you've decided to start a business in construction. Congrats! Despite the ebbs and flows of the real estate industry, there will always be work for you. While you may have the basics of your business, such as who to hire and what to call your company, here are ten things you may not have considered. Apply for Permits - Construction is a highly regulated industry, and to become a licensed construction provider, you'll need to apply for a few building licenses and permits. Because you're involved in so many areas when constructing a building, you may need permits for electrical,...

If you have your sights set on incorporating your business, you may be wondering if a C Corporation or S Corporation is the better option. While both are popular choices, nuances exist that may make one or the other more advantageous for your situation. The business structure you choose will affect your company in many ways, including the legal and financial aspects. That’s why it’s critical to do some research and ask for guidance from an attorney and accountant or tax professional when deciding. In this article, I’ll compare the C Corporation vs. the S Corporation. This review will help...

Besides the questions of when and how to start a company, many entrepreneurs want to know where to incorporate a business. Each state has its own business laws and tax codes, so deciding where to form an LLC or a corporation should not be taken lightly. I recently talked about this important topic in a webinar for accounting professionals hosted by CPA Academy. I want to share that information with you, too. It’s valuable food for thought whether you’re advising clients on their entrepreneurial journey or starting your own business. Considerations When Choosing a Business Structure Before...

Yes, it is possible to set up a Limited Liability Company (LLC) in another state, and there are two possible scenarios for doing so: Form an LLC in a state different from where the business owner lives and works. Register an existing LLC formed in one state to conduct business in another state (a process called foreign qualification). An LLC is called a domestic LLC in the state where it was formed—i.e. where its owners (members) filed the entity’s formation paperwork. When an existing LLC’s members apply for foreign qualification to conduct business in one or more other states, the LLC...

The Series LLC is also known as a Series Limited Liability Company or SLLC for short. It allows multiple Limited Liability Companies (LLCs) within a master LLC to operate as separate entities with their own names, bank accounts, and record keeping. Each series can conduct business independently in this way because the series LLCs’ articles of formation explicitly allow them to have unrestricted segregation of membership interests, assets, liabilities, and operations. Different members and managers might run each series, and their rights and responsibilities might vary from series to...

A lot of entrepreneurs wonder what state should be used to incorporate a new business. Should it be their own state or maybe another state like Delaware or Nevada? There is no easy answer to that question, however, there are definite benefits for some businesses to incorporate in states other than where they conduct business. Let’s look at some examples of why you might incorporate out-of-state and then we'll review a few situations that will require you to register a foreign qualification. Why People Consider Incorporating Out-of-State Many people choose to incorporate their businesses...