EIN For My One-Member LLC

Do I need to get an EIN (Employer ID Number) when I'm the only member of LLC? One of the most important reasons that a business owner decides to establish LLC (Limited Liability Company) with only one member in the business is that they want to protect their personal assets from any loss that the business may cause. Limited Liability Company is relatively easy to set up, but the tax payment is not as clear because there is no separate tax classification for LLC. The business owner of LLC should decide which tax classification they are going to file on: sole ...

Cash-basis and Accrual-basis Accounting

In cash basis accounting, income is recognized when it's received and expense is recognized when it's paid. The date when the sale is made or the expense is incurred is not significant in cash basis accounting method. In accrual basis accounting, income is recognized when it's earned, realized or realizable. Expense is recognized when related revenue is recognized. Terms: "revenue is earned": it means either products are delivered or services are provided "revenue is received": Revenue is received when a deposit is made or a payment is received. "revenue is realized": Revenue is realized when cash for products or services is received. "revenue is realizable": ...

Legal Requirements for New Internet Business

What are the essential legal requirements to start a business? - Choose a type of business you want to start. Sole Proprietorship General Partnership, Limited Partnership LLC (limited liability company) C Corporation, S Corporation - Choose a business name. How can you choose a good business name? - Choose accounting period and method. The choices for accounting period are calendar year and fiscal year. Fiscal year is an accounting year that is used to calculate annual financial statements in business. Taxation laws require accounting reports generally once per every twelve months or once per every 52 or 53 weeks, but the year isn't required to be the ...

How to Start e-Business

Starting an online business is not much different from starting a traditional business. - Business license and permits for Internet business Online business owners are required to obtain any necessary business license(business tax) from city, county, state or federal governments as regular business owners do. What are the legal requirements for starting a new business? - Sales tax on online sales Some sites need to collect sales tax and others don't. The rule is if an Internet retailer has a physical store, warehouse, or office in a particular state, they must collect sales tax for sales for customers from that state. - Business name ...

Choose a Right Business Structure

Choosing a right business legal form is one of the most important decisions to make as a business owner. In California, there are five common business forms available: sole proprietorships, partnerships, corporations, S corporations and Limited Liability Company (LLC). Partnerships can be either general partnerships or limited partnerships. Limited Liability Company is relatively new and draws advantages from corporations and partnerships. Single business owner may form a Limited Liability Company since January 2000 in California. People who want to start a new business should consider these important factors to decide which business form is the right one ...