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I meet people at the events I speak at, and they often proudly tell me that they already have an LLC set up.  I ask them what they do, and then I ask them how their LLC is taxed.  In well over a third of the cases, […]

There is a lot of confusion about pass-through entities.  I have people all the time tell me that one of the advantages of an LLC is that it is a pass-through entity.  The confusion comes because people don’t separate the legal aspects of an entity with the […]

Don’t get caught in a web of deceit. Business credit almost never is what it is cracked up to be by the promoters who are pitching programs to get you business credit. There are a lot of seminars, webinars, and other programs out there asking you to […]

A lot of people misunderstand or get confused when we talk about double taxation.  The double tax commonly talked about only occurs in the context of a corporation or LLC taxed under Chapter C of the IRS Code.  This is commonly called a C corporation.  Please note […]

The operation of a corporation and LLC is very similar, but but in order to make it clear which entity you are talking about, a distinct set of terms has been created for each entity. Consider the following list of terms for corporations and their counterpart terms for […]

Ninety-five percent of businesses do not survive the death of the business’ founder.  Apple may not survive the death of Steve Jobs.  Yes, the founders and CEOs make a difference, but there is another reason businesses fail after the founder’s death.  The little businesses get caught up […]

To keep the legal sharks from piercing your corporate shield, you need to be able to demonstrate that you have treated your company like a real business.  In order to convince the judge, when you are sued, that you have treated your company like a real business, […]

#23 on Lee’s formalities checklist is “Has your LLC adopted an expense account form for official company use that meets IRS guidelines?” When the company is reimbursing you or any employee, the expense is deductible to the company and the reimbursement is not income to the employee.  […]

#22 on Lee’s formalities checklist is “Are you current on the above formalities and paperwork? If you’re behind, do you know how to catch up?” Mistakes happen. Required formalities in operating an LLC or corporation can be missed. In fact, most small company owners just ignore all […]