LLC Taxation 101 An LLC, or limited liability company, offers the same personal liability shield to each of its owners that a corporation offers. The LLC is essentially an organized partnership offering the same protections as corporations, but with much more flexibility. But, what characterizes LLC taxation? 1. Is the LLC entity itself taxed? The Read More…
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7 Common S Corporation Taxation Questions
S Corporation Taxation 101 An “S” corporation is a corporation, just like a C corporation. Its shareholders enjoy the same general shield from personal liability for the corporations’ acts or omissions. The main differences lay in the tax structure of both entities and with certain restrictions on ownership. S corporation taxation presents a unique set Read More…
How Are S-Corporations & LLC’s Taxed?
Your corporation or LLC will have to pay any required business income taxes in any applicable state in which your company transacts business in addition to any required franchise taxes. Business Income Taxes Most states (47) charge corporate income taxes for income derived in that state, or “source income.” Businesses organized in states outside states Read More…
When Are You Considered An Employee Of Your Business?
You can be personally responsible for not classifying yourself or any other employee as an independent contractor. When the IRS and state taxing authorities find businesses have inappropriately avoided payroll taxes, the taxes, interest and penalties can be severe. In some cases, there can even be criminal liability. Many people try to call themselves or Read More…
Payroll Tax Liability Puts Business Owners On The Hook
Unpaid Payroll Tax Liability Owners of a corporation or LLC with employees can be held personally responsible for the unpaid payroll tax liability. Businesses must withhold income tax and Social Security tax from paychecks and pay the IRS. Any owner, officer, manager or employee of the business who exercises control or supervision over any tax Read More…
14 Steps To Avoid Corporation & LLC Personal Liability!
Avoid Corporation & LLC Personal Liability! Once you have organized your business, you are still not entirely immune from personal liability. When courts impose liability on individuals for the actions of the corporation, this is referred to in legal parlance as “piercing the corporate veil.” In order to avoid personal liability for debts and other Read More…
How Can Business Owners Be Exposed To Personal Liability?
Once you have organized your business, you are still not entirely immune from personal liability. When courts impose liability on individuals for the actions of the corporation, this is referred to in legal parlance as “piercing the corporate veil.” In order to avoid personal liability for debts and other acts of the corporation (or LLC) Read More…
Your Business Is Not Always A Personal Liability Shield!
Once you have organized your business, you are still not entirely immune from personal liability. When courts impose liability on individuals for the actions of the corporation, this is referred to in legal parlance as “piercing the corporate veil.” In order to avoid personal liability for debts and other acts of the corporation (or LLC) Read More…
Make A Habit Of Following Corporate Formalities!
Another basic but very important legal requirement for corporations involves compliance with what are known as “corporate formalities”. As the name suggest, corporations must comply with certain formal legal requirements to maintain its shareholders’ personal liability shield. (Corporate formalities should be followed by LLC’s as well, albeit to a lesser extent, as discussed below). Basically, Read More…
Corporate Compliance 101: Annual Reports & Annual Meetings
Once you have decided to organize, there are a variety of basic rules and regulations you should become familiar with. Simply stated, in exchange for the personal liability shield granted to each owner of an organized entity, certain legal requirements and formalities must be followed under each state statute. You should at least be familiar Read More…