On average, 4 million new businesses are started each year in the United States. Many of those businesses are organized as limited liability companies (LLCs). Combining the benefits of a corporation and a partnership, an LLC protects its members’ personal assets from business liabilities, avoids double taxation, and provides flexibility regarding its operations, management, and financial and voting rights.
Small business owners often wear many hats. On any given day, they might dabble in customer service, human resources, accounting, bookkeeping, and legal matters.
When hiring a new worker, companies have two choices: bring a new employee on board or hire an independent contractor. One of the main benefits of having employees is that you have much more control over the work they do. You can train them how you want, specify the hours they work, and require them to work only for you.
A skilled attorney is a critical part of any business owner’s advisory team. Business attorneys are equipped to assist you in handling a variety of tasks that can protect you from potential legal and business pitfalls, in addition to solving existing legal issues.
There are many misconceptions and assumptions regarding the use and effectiveness of non-compete agreements. This is not too surprising considering that judicial enforcement of these agreements is very fact-intensive and situation-specific. There are no bright-line rules to help business owners determine whether a noncompete agreement will be enforceable, so it can be challenging to craft […]
The COVID-19 pandemic has ushered in a wave of new remote workers. This shift in the way employers conduct business brings new challenges as they seek to comply with the Fair Labor Standards Act (FLSA) requirement of paying employees for all hours worked. In response, the Department of Labor released Field Assistance Bulletin No. 2020-5 […]
New Reporting Requirements for Corporations and LLCs in 2024 –Better know the rules and comply or face hefty fines!
The Corporate Transparency Act (CTA) requires that certain businesses disclose to FinCEN (Financial Crimes Enforcement Network) information about the company, such as its beneficial owners and, in some cases, the name of the applicant who set up the entity. The term “reporting companies” describes who must file and follow reporting requirements. You are a “reporting […]
Contrary to popular belief, the S corporation is not a distinct entity type. According to the Internal Revenue Service (IRS), an S corporation is a corporation that has elected treatment as a pass-through entity for federal income tax purposes under Subchapter S of the Internal Revenue Code.
You are a new business owner and have decided to organize your business as a limited liability company (LLC). You are its sole owner and work for the company. How do you pay yourself?