Posts tagged: Business Structure

LLC - Get Full Liability Protection From Your LLC

One of the most significant reasons to form Limited Liability Company (LLC) is to get liability protection. As a corporation provides a legal shield against their shareholders' assets, an LLC offers legal protection for the owner's or members' personal assets from business claims or debts. The risk of the LLC owner and members is generally limited to the amount of their investment. However, when your business is in a trouble such as a lawsuit, the court might go after you and your personal assets, especially if you have a single member LLC and haven't followed certain rules with your ...

Disregarded Entity Definition - What is a Disregarded Entity?

What is a disregarded entity? A disregarded entity is a business entity which is considered to be an undivided part of the owner of the entity for federal tax purposes. That is, the entity is disregarded as an entity separate from the owner. A good example of disregarded entities is a single member LLC that does not choose to be classified as a corporation for federal tax purposes. A single member limited liability company that is not classified as a corporation automatically defaults to a disregarded entity, and file federal income tax return as a sole proprietorship. How does IRS treat ...

How to Name Your Business

- Make it informative and meaningful. It's easier to remember when your business name reminds customers of your goods or services. Make it meaningful and easy to remember. Some experts vote for abstract names, but it will take more efforts to do efficient and creative marketing for it. Yet, when the business marketing is successful, the name will be more unique, hence it will leave a strong impression to people. - Consider to make it reflect your brand. - Consider names that reflect values, quality of products and services that your business provides. For example, Hearty Vitamin Shop sounds more ...

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 ...

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 ...