The Launch Blog

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...

The United States an ideal location for foreigners to start a business and capture that elusive American dream pushed so hard by the media and social media. It’s no wonder many international entrepreneurs dream about starting a business in the USA. Nonresidents can take advantage of the lower tax rates, enhanced legal protections, and a very strong economy. Neither citizenship nor residency is required to start a small business in the United States and the formation process is a lot easier than one might expect. Let's walk through the formation process and provide a checklist to get you...

Today’s business owners have more options for business financing than ever before.  But some methods to finance your business may cause you to toss and turn at night more than others. Of course, stress can be subjective. One person’s definition of stress may be different from another’s.  But this list can help you sort through the different ways to finance your business that are less likely to cause you stress or at least allow you to choose what you consider to be low stress. Here are some lower-stress financing options for your small business. Apply for Working Capital Loans Working...

It is legal to use your home address for your LLC, C Corporation, or other business entity. You do need a physical address to register a business, but many sole proprietors and various types of professional services businesses don’t have a separate business location and they don't need one. When they decide to incorporate or form an LLC, they see using a home business address as a simple solution. Does this lack of address impact the business negatively? Do you need a physical address for your business? Is it legal to use your home address for business activities? And if you use a home...

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 Incorporating If you’re operating your business as a Sole...

Tax implications are among the most important factors to think about when deciding on a business entity type. Some business owners are attracted to the simplicity of pass-through taxation, which is how a Sole Proprietorship, Ppartnership, LLC, and S Corporation are taxed. But for others, the tax benefits of incorporating as a C Corporation offer more financial advantages. A C Corporation is a business entity independent (both legally and from a tax perspective) of its owners (called shareholders). As such, the company is responsible for reporting its profits and losses on its own income...

Are you thinking about how to start a restaurant business? Without a doubt, it's an industry that contributes immensely to our economy. According to statistics from the National Restaurant Association, there are over one million restaurant locations in the United States, and they collectively employ 15.6 million people. What I think is especially encouraging about the restaurant industry is that it has a track record of opening the door to entrepreneurship to people with humble beginnings who are willing to work hard and learn. Many people who start a restaurant begin by working in the...