Is your business operating in a state other than the state of formation? If so, it may need to qualify in that state. You had a business idea and took the initiative to form an LLC or corporation in your home state so that you can run the business with limited liability protections. Congratulations! You’re off to a great start. But now you may be asking yourself: Do I need to register my business in other states? The answer to this question invokes every lawyer’s favorite phr

Part 3 – Disadvantages of an S Corp Entrepreneurs face several choices when structuring their business. This series of posts is intended to help them evaluate whether or not they should utilize S Corp status. The first post covered what an S Corp actually is (a tax status, not a business entity) and reviewed the benefits of an S Corp over a C Corp (pass-through taxation and the QBI deduction). The second post compared the benefits of an S Corp over an LLC (self-employment-tax

Part 2 – Business Entity Comparison: S Corp Status vs LLC Entrepreneurs face several choices when structuring their business. This series of posts is intended to help them evaluate whether or not they should utilize S Corp status. The last post covered what an S Corp actually is (a tax status, not a business entity) and reviewed the benefits of an S Corp over a C Corp (pass-through taxation and the QBI deduction). This second post will compare the benefits of an S Corp over a

You just invested money to start an LLC. Now you want to bring in partners to manage the company or help with the work and offer them some form of equity compensation. How do you go about doing that? Unlike corporations, LLCs cannot issue restricted stock, stock options, or the like. But LLCs have an easy and tax efficient alternative called a “profits interest.” Profits interests can provide many benefits for their holders. The holder of a profits interest is a member of the