reThis article is written by Ben Rucker, a former special IRS auditor. The video, of course, is of Lee Phillips. #21 on Lee’s formalities checklist is “Do you have a resolution documenting the business purposes for any questionable deductions?” Large, Unusual, or Questionable deductions (LUQs) on your […]
Read more →This article is written by Ben Rucker, a former special IRS auditor. The video, of course, is of Lee Phillips. Item #16 on Lee’s formalities checklist allows you to minimize the pain of an IRS audit: “Are you sure that your tax returns, books of account, and […]
Read more →#15 in my formalities checklist is one of the most important: “Have you kept separate books and bank accounts for the company and yourself, making sure at all times never to commingle any funds?” Commingling problems occur when business funds are mingled with personal funds and vice […]
Read more →Item #14 on my formalities checklist asks, “Have you made the appropriate resolutions of the Managers to authorize and document all major company acts?” In your LLC or corporation, the company’s ruling body (managers in an LLC or directors and officers in a corporation) needs to formally […]
Read more →#13 on my formalities checklist asks whether your LLC is legally doing business in other states. If you have an LLC or corporation that is formed in one state and is doing business in another state or owns property in another state, the LLC or corporation has […]
Read more →This post was written by Ben Rucker, Tax Specialist. The video, of course, is of Lee Phillips. #11 in Lee’s formalities checklist asks if you have secured your Federal Tax ID number. #12 asks if you have made the proper tax election. The form of business you […]
Read more →#6 in Lee’s formalities checklist asks “Are you holding your annual meetings?” #7 asks “Have you given proper notice (and kept copies) of the Meeting of the Managers?” #8 follows up with “Have you kept proper and adequate minutes for the annual Meeting of the Managers?” Whether […]
Read more →#4 in Lee’s formalities checklist asks “Have you issued Membership Interest Certificates?” #5 asks “Do you have a ledger of your Membership Interest Certificates?” When you form a corporation or an LLC for your business, part of the process is to establish ownership of the company. Some […]
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