Understanding Your Business Liabilities and Assets
Assets, liabilities, and equity are accounting terms that every small business owner should be familiar with. They are included on a business’s balance sheet, providing a snapshot of financial health. A balance sheet shows a company’s assets and liabilities at a given time and how money is flowing in and out of the business. This […]
What Is a Series LLC, and Can I Use One?
The series limited liability company (LLC) is a type of business structure that allows a group of subunits called series to be owned in a tiered structure. At the top level is the “parent” or “umbrella” LLC. Below this are one or more “series.” Not all states allow series LLCs. In states that permit them, […]
Balance Sheets: What Are They and Why Are They Important?
Balance sheets are financial statements that provide a snapshot of a company’s financials at a specific time. Also known as a statement of financial position, a balance sheet shows what the company owns that can be converted to cash (assets), its debts and financial obligations (liabilities), and its net worth (owner’s equity or shareholder’s equity). […]
What to Know about Limited Liability As You Grow Your Business
Starting a business involves a certain amount of inherent risk. There are no guarantees that the founders of a company will get along, a product or service will sell, or market conditions or competitors will not create unforeseen problems. While entrepreneurs must be willing to take a leap of faith, there are steps they can […]
Buying a Business with Real Estate
Buying a business and purchasing real estate are two very different investments. Business ownership typically requires some management skills and knowledge about market conditions, consumer trends, staffing, and finances. Ownership of real estate, on the other hand, requires considerable due diligence up front but generally offers passive growth with fewer management responsibilities. The skill sets […]
Legal Considerations for Creating a Cooperative
A cooperative (co-op) is a business entity owned by—and operated for—the benefit of its members. There are several types of co-ops, and they are found in a variety of industries, from agriculture and the arts to finance and electricity generation. While their operations resemble traditional businesses and they seek to make a profit, co-ops are […]
Why Your LLC Needs an Operating Agreement
Operating agreements are not required in most states; however, that should not dissuade you from creating one. Having an operating agreement can provide your business with many benefits and can help you avoid significant problems.
How to Pay Yourself When You Own an LLC
As an LLC owner, you can be taxed as a sole proprietorship (if you are the LLC’s sole member), a partnership (if your LLC has two or more members), or a corporation. An LLC also offers owners flexibility in how they pay themselves. How you get paid by your LLC depends on the tax classification you choose. There are various rules for how different business entities are allowed to pay their owners as well as IRS guidelines to consider.
What You Need to Know About S Corporations
A business is only as strong as its foundation. To set your business up for future success, you need a structure and tax classification that will maximize its potential. If you have questions about which structure and tax status are right for your company, or if you are ready to elect S corporation status, our business lawyers are here to help.
What Is the Difference between a Trust and an LLC?
Whether a trust or an LLC is a better choice may depend on the type of asset, but you do not necessarily have to choose between the two. In fact, an LLC can be placed in a trust. To explain how that works, it is first necessary to better understand each type of entity and clear up some common misconceptions about them.