Pass-Through Taxation: What You Need to Know
Most US businesses have a pass-through taxation structure: they are not subject to corporate tax. Instead, they have their income “pass through” to their owners to be taxed on their individual income tax returns. Pass-through businesses have simpler filing and a lower tax rate than C corporations because they avoid double taxation. Pass-through business owners […]
What You Should Know About Issuing Stocks
The ability of a company to issue stock is a crucial element of modern capitalism. Selling stock, which represents an ownership share in a company, allows companies to raise money for growth and expansion. Stock options are also used as an employee incentive, especially in the startup phase. C corporations are the only entities that […]
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 You Need to Know About Paying Employees
Employees are essential to your small business. Hiring and retaining workers is one of the biggest challenges that business owners face. In this highly competitive labor market, employers are looking for competitive edges to attract—and keep—employees. Paying employees isn’t as straightforward as one might think. While many workers currently place a greater emphasis on job attractors […]
How to End Your LLC
When you started your limited liability company (LLC), the last thing you probably had on your mind was ending it. Many LLCs are created for specific purposes, however, and when that purpose has been served, its members may think about winding up the company. LLCs may also terminate due to member retirement, conflict, or death; […]
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 […]
The Annual Meeting: What Every Corporation (and Many Limited Liability Corporations) Should Know
All registered corporations are required by law to hold an annual meeting. Limited liability companies (LLCs), although not subject to the same statutory requirement, may hold regular meetings in accordance with their governing documents. What Is the Purpose of a Corporation’s Annual Meeting? In the United States, all corporations must hold an annual shareholder meeting […]
