Starting a New Business Archives

Starting an LLC? What you need to know

10/25/201703/29/2016 by Report from Counsel

Many new business owners think it’s easy to set up an LLC. That’s partly the result of companies and websites that claim to offer simple, “standardized” LLC operating agreements. Just fill in the blanks and you’re off! In reality, there’s no such thing as a “standard” LLC operating agreement. You have many of choices to … Read more

Estimated Taxes for Business Owners

08/17/202005/27/2014 by Report from Counsel

Estimated tax is the method used to pay tax on income that isn’t subject to withholding, most notably earnings from self-employment. Many owners of small businesses-whether operated as S corporations, partnerships, limited liability companies electing partnership taxation, or sole proprietorships-pay their estimated tax using the same IRS Form 1040-ES that individuals use.

Before You Start a Business . . .

10/25/201704/03/2014 by Report from Counsel

Both heart and mind must be working well if the owners of a new small business are to experience success. While it is only human nature—not to mention fun—to indulge one’s imagination about what a new business started from scratch could be like, would-be entrepreneurs need to engage in some cold, hard thinking and planning before taking the plunge. At the risk of pouring cold water on some of the anticipation and excitement, what follows is a guide for how to plan for, and think through, the many decisions that must be made well before you have that “Grand Opening” sign made.

Why?

This may seem obvious, but you should know just what your reasons are for wanting to start a new business. If the motivations are weak, odds are the business will be a bust, whereas well-founded reasons can help a business persevere through good times and bad. Some common reasons for starting a new business include escaping the whole nine-to-five routine (though it may be replaced by an eight-to-eight routine), answering to no one else, upgrading your standard of living, and being convinced that you can provide a needed product or service.

Deducting The Business Use Of Your Home

08/17/202001/28/2014 by Report from Counsel

The federal income tax deduction for the business use of a home has a good dollars and cents upside for those who qualify. Some detailed questions have to be answered correctly to get to that point, however. Not surprisingly, the IRS publication on the subject makes use of a complex flowchart filled with “yes or no” questions to guide taxpayers to a determination of their eligibility for the deduction.

Qualifying for the Deduction

To pass the threshold for use of the home business deduction, a taxpayer must satisfy the following two basic sets of requirements: The first set concerns the nature of the business activities, while the second set relates more to the place itself.

Limited Liability Companies – the Best of All Worlds?

10/25/201710/20/2013 by Report from Counsel

A limited liability company (LLC) is a business structure that combines some of the best features of sole proprietorships, partnerships, and corporations. LLC owners, like their counterparts for partnerships or sole proprietorships, report profits or losses on their personal income tax returns. Like a corporation, however, the owners of an LLC have “limited liability,” that is, they are shielded from personal liability for debts and claims arising from the business.

Limited Liability

The limited liability for LLC owners is not absolute. Owners still can be held liable if they (1) personally and directly injure someone; (2) personally guarantee a loan or business debt on which the LLC defaults; (3) fail to deposit taxes withheld from employees’ wages; (4) intentionally commit a fraudulent or illegal act that harms the company or someone else; or (5) treat the LLC as an extension of their personal affairs rather than as a separate legal entity.

LLC Member Personally Liable

09/23/202011/08/2012 by Report from Counsel

The owner of a lot on which a four-unit condo complex was to be built contracted with a small residential construction company to build the condos. The
construction company was formed as a limited liability company (LLC), the only members of which were a licensed home builder and his wife. The licensed
builder served as general contractor on the project, overseeing subcontractors that the LLC had selected.

Business Entities Video

10/25/201701/09/2012 by Report from Counsel

Attorney Bob Ross discusses business entity basics, including Sole Proprietorships, Corporations and Limited Liability Companies (LLCs), and some issues to watch for those starting businesses or business partnerships.

SBA Loans Can Help To Finance Small Businesses

08/17/202010/19/2011 by Report from Counsel

It is no secret that businesses generally, and small businesses in particular, have been through rough times, and those are not over yet. Still, there is some
assistance to be had as a small business owner if you know where to look. One prominent example is the Small Business Administration (SBA) and its
Guaranteed Loan Programs.

What Is an S Corporation?

08/17/202005/05/2010 by Report from Counsel

An S corporation is a form of business classified for federal income tax purposes as a corporation that has elected to be taxed as a pass-through entity, in a manner similar to a partnership or sole proprietor. Unlike a regular corporation, or C corporation, an S corporation (both names derive from sections of the Internal Revenue Code) generally is not subject to federal income tax. Instead, its income is reported on the tax returns of its shareholders, and they have the responsibility for paying the tax. If there are losses suffered by the corporation, they also pass through and are reported on the shareholders’ income tax returns.

Business Start-Up Checklist

10/25/201711/24/2009 by Report from Counsel

Both heart and mind must be working well if the owners of a new small business are to experience success. While it is only human nature, not to mention fun, to indulge one’s imagination about what a new business started from scratch could be like, would-be entrepreneurs need to engage in some cold, hard thinking … Read more