I love LLCs because I don’t have to do anything! While the LLC organizational structure has gained great popularity, and is often the entity of choice for new business owners, the wonderful flexibility of this structure also carries many potential pitfalls. Below is a short list of some of the Pros and Cons of the […]
Business Law
Tax Benefits of a LLC
THЕ TАX BЕNЕFITЅ ОF A LIMITED LIАBILITУ COMPANY A limitеd liаbilitу соmраnу, or LLC, is оnе оf thе most рорulаr buѕinеѕѕ entities. An LLC is uniquе in thаt it’ѕ a pass-through entity. Thе Internal Rеvеnuе Sеrviсе (IRS) does nоt consider an LLC a legal separate еntitу in terms оf tаxаtiоn, ѕо all buѕinеѕѕ income, losses, […]
The Ultimate Business Pre-Nup
We’ve all heard the stats… 50% of marriages end in divorce. And you ask, what does this have to do with business law Scott? The answer is simple, despite the myth that 95% of companies fail (I’ve heard, 80%, 90%, etc.), reality suggests that nearly 50% of companies make it to the fifth year. ( https://www.sba.gov/sites/default/files/Business-Survival.pdf). […]
Structuring Alone is Not Enough
It is common for entrepreneurs to form multiple companies to operate various business interests. Even when those interests are being utilized to accomplish a core mission. For example, using a Holding Company (HC) to hold the interest in several subsidiary companies… a Payroll Company (PC), an Operations Company (OC), and a Real Estate Company (RC). Proper […]