Frequently Asked Questions

What are the advantages of an LLC?

LLC's offer numerous advantages, including the following.

• Pass-Through Taxation - LLC's allow for pass-through taxation. This means that earnings of an LLC are taxed only once. The earnings of an LLC are treated like the earnings from a partnership, sole proprietorships and most S corporations.
• Limited Liability - The LLC owner's liability is generally limited to the amount of money, which the person has invested in the LLC. Thus, LLC members are offered the same limited liability protection as a corporation's shareholders.
• Flexible Management Structure and Flexible Ownership is Permitted - Like general partnerships, LLC's are generally free to establish any organizational structure agreed on by the members. Thus, profit interests may be separated from voting interests.

What are the disadvantages of an LLC?

The disadvantages of an LLC include the following.

• More Paperwork Than an Ordinary Partnership - Documents must be filed at the state level to create an LLC, which is not the case with a general partnership.
• Dissolution Date - Some states require that a dissolution date be listed in the articles of organization. This date may be amended. Further, certain events, such as death of a member, a member leaving, bankruptcy, etc. can be a dissolution event. A corporation has unlimited life and these events are not dissolution events for a corporation.
• Newer Entity Type - The LLC is a newer entity, and people are not as familiar with the LLC as a corporation.

What expenses can I deduct?

Are you used to filing a schedule C for your small/medium business? Are you wondering if there are differences in what you can deduct for a schedule C and for your corporation? There are differences. We want to save you money on your tax return - legally! One of the best ways to do that is to make sure that you are taking advantage of all of your legal deductions. Don't wait until tax time to figure out what your business deductions are. A little bit of planning will go a long way toward reaching your financial goals. Let us help you set up your business structure. We can help you set up your system so that when tax time does come around, gathering your information to file your tax return will be easy!

How do I manage my corporate record book?

Your corporate record book is a complete history of your corporation. Every move that the corporation makes is recorded in the record book. If you ever need to show your corporate record book, for a legal case, tax audit or other purposes, how organized will it be? That will depend on how you keep it updated. Does your corporate record book contain the followin?

• All of the up to date filing papers for your corporation.
• By Laws
• All the proper Resolutions Meeting Minutes
• Up to date Stock Certificate information

If you are confused by your corporate record book, call us and we will help you understand what is required to keep an updated corporate record book. Or better yet, let us update your record book for you. We offer a Corporate Resolution Service for a small yearly fee. Let us handle the details for you.