SINCE 1974
Elon Musk lost his Tesla CEO pay package lawsuit in the Delaware Court of Chancery worth tens of billions of dollars. He is appealing it to the Delaware Supreme Court. However he wasted no time deriding Delaware’s esteemed judiciary. Many Delaware business leaders and elected officials were concerned this would prompt a mass exodus of […]
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While an LLC can live forever because it is an artificial person, the same cannot be said for its Members, who are mortal. The LLC Operating Agreement specifies who are the Members and Managers of the LLC, but not often do Members (nor should they) name beneficiaries of who is to inherit the LLC interest […]
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An increasing number of people are finding themselves either self-employed or engaging in short-term employment arrangements. These individuals are typically actors, content creators, gig economy workers or consultants. These employment arrangements can come with many benefits, however, they may also pose a tricky tax situation. An effective strategy for self employed individuals to reduce their […]
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The concept can be confusing at times, but there is a difference between forming a business and incorporating. Interested in incorporating your business, but not sure exactly what it entails? Here’s the definition of incorporating, plus what it means to incorporate. How Do You Define Incorporate? In the U.S., incorporating a business is something that […]
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The terms “non-stock” corporation and “non-profit” have become almost interchangeable, however, this is not correct. “Non-stock corporation” refers to a type of legal entity filed with the Secretary of State. A “non-profit” organization refers to a non-stock corporation that has obtained a tax determination letter from the IRS. Here we sort through these two loaded […]
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A serial entrepreneur will often form multiple “brother-sister” companies to keep their assets from becoming commingled. But having partners that own an interest in each of these companies can generate separate partnership tax returns for each entity. One way to simplify this is to form a holding company with the partners. You can reduce the […]
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The Delaware Limited Liability Company (LLC) is the preferred legal entity for entrepreneurs and small business owners. Compared to a corporation, an LLC offers much more flexibility and minimal red tape. The company’s Operating Agreement sets forth an LLC’s ownership. This internal document governs the affairs of the company and is not filed in the […]
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If you own an LLC or corporation, you might have encountered the term “Certificate of Incumbency.” Maybe a bank or a lender requested this Certificate to secure a loan for your business. What exactly is a Certificate of Incumbency? This article delves into Certificates of Incumbency, explaining what they are, why they are used, and […]
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Philanthropists often ask if an LLC can be a non-profit. What they are referring to is the 501c3 tax-exemption status. 501c3 status is a coveted designation because it exempts a company from federal, sales, and property taxes. These exemptions are crucial to the function of non-profit organizations. IRS regulations do not allow LLCs to be […]
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Every year, there are new opportunities to grow your business. For many small business owners, now is the perfect time to consider forming a Limited Liability Company (LLC). The LLC has quickly become the most popular business structure for small business owners. According to the Delaware Division of Corporations, over 1.5 million LLCs are registered […]
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One of the best decisions that a new business owner can make is to incorporate their business. But with so many business entity types and legal jargon, incorporating your business can be overwhelming and confusing. If you are a first-time business owner, you may be asking questions like: What does LLC stand for? What does […]
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The process of incorporating can come with a lot of new questions, especially if you’ve never done this before. One of them is corporation vs. incorporation, and how they differ, as well as the difference between Inc. and Corp. We’re always happy to share our knowledge to help people when it comes to incorporating. Here […]
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If you want to do business using an LLC, you will need to open a business bank account. Having a separate bank account for your LLC is required to protect your personal assets from business liabilities. Savvy entrepreneurs know they should never mix personal funds and accounts with company assets, so it’s important to know […]
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“The only ship that doesn’t float is a partnership”. This is common when consulting entrepreneurs who are considering bringing on a business partner. While a general partnership is the oldest business organization, it is the worst choice possible. This is because general partnerships are laden with traps that could easily end in financial ruin for […]
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Incorporating your company is an exciting process, but the work isn’t done after you form an LLC or Corporation. After that, there are several more steps to take, like getting a tax ID number for your business. The process of getting a tax ID isn’t complicated, but there is often some confusion about what, exactly, […]
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We often get questions about LLC stockholders, bylaws, stock certificates, directors, minutes and sometimes a Limited Liability “Corporation.” It’s understandable to have questions about how LLCs are structured and operate. Here’s what you need to know. Are there shareholders in an LLC? Limited Liability Companies do not have stock or bylaws. In fact, LLCs have […]
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You may have seen the “Circle B” logo, but what does it mean? The logo can only be displayed by a Certified B Corporation. These are companies that have achieved a minimum score on an evaluation of their corporate governance, community, employee, and environmental benefits. Here’s what you need to know about this entity. What […]
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If you have ever tried to rent an apartment or lease a vehicle, you are probably familiar with the personal credit system. Your Social Security Number is attached to credit reports generated by major credit bureaus. Potential lenders then use your credit score to assess your ability to borrow money. Much like how a Social […]
Continue Reading We often get questions about LLC stockholders, bylaws, stock certificates, directors, minutes and sometimes a Limited Liability “Corporation.” It’s understandable to have questions about how LLCs are structured and operate. Here’s what you need to know. Do LLCs have stock? Typically, “stock” is not the term used for LLC ownership shares. In most LLCs, the […]
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Whether you’re interested in forming a corporation or are just curious, it’s understandable to wonder, “What does the President of a Corporation do?” Traditionally the President of a Corporation is the highest executive officer. The Bylaws of the Corporation set forth the role of the President. Some businesses have also established higher offices, such as […]
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Starting January 1st, 2024, owners of U.S. businesses will need to comply with new rules. The Corporate Transparency Act (CTA) is a federal law that requires business entities, like LLCs and corporations, to report information about their owners to the Financial Crimes Enforcement Network (FinCEN). These new reports are called “Beneficial Ownership Information Reports”. Honest business […]
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Business entities operating in the United States need to prepare for new compliance requirements taking effect on January 1, 2024. The Corporate Transparency Act (CTA) requires LLCs and corporations to submit BOI reports to FinCEN. These reports contain basic information about a company’s significant owners and important decision makers. Whether your business is a solo […]
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“Can I see your evidence of filing?” That is what the banker said when I went to open my business account. The banker then said can I see your “articles?” How about the “proof” your company was formed? These terms are all synonymous. Banks need certain documents for “know your customer” law compliance under the […]
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Before doing business or owning assets through a single-member Florida LLC, you should consider either adding a nominal partner or using a Delaware single-member LLC instead. Florida is the most popular state for business formation. Florida has more active business entities than even the state of Delaware. More than 2.6 million entities are active in […]
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The Internal Revenue Service (IRS) uses several different types of identification numbers for individuals and businesses. Most U.S. citizens are familiar with Social Security Numbers or Employer Identification Numbers, however, not everyone knows about the other types of federal tax ID numbers. In this article, we discuss Individual Tax Identification Numbers, or “ITINS”. We breakdown […]
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The term “subsidiary” is used often in business, however, you might not know exactly what it means. Subsidiaries are an important part of the legal structure of nearly every large company. In this article, we discuss what subsidiary companies are, how they are used, and the best way to structure them. What Is A […]
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The solar energy industry has been experiencing remarkable growth, driven by increasing demand for renewable energy solutions. As solar companies expand and navigate the complexities of the market, selecting the right business structure becomes a crucial decision. Forming a Delaware Limited Liability Company (LLC) offers many benefits for solar companies. This article explores why Delaware […]
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Who owns and manages an LLC? If you’re thinking about setting up a Limited Liability Company (LLC), it’s helpful to understand the roles of LLC owners and how they’re involved in managing the business. LLCs offer the flexibility to create unique management structures, pick officer titles, distribute management responsibilities, and outline ownership interest. In this […]
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What is a corporation? Corporations are a type of legal structure that play a significant role in the business world. Entrepreneurs use the legal structure of a corporation to protect themselves from risks and grow their businesses into large enterprises. You interact with businesses set up as corporations nearly every day, however, you may not […]
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As a business owner or entrepreneur, you may have come across the term “holding company.” Holding companies are a type of legal structure utilized by businesses across various industries. When set up correctly, a holding company can offer unique legal protections that a single business entity cannot achieve. Many well-known corporations use holding companies as […]
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If you’ve formed a Delaware LLC but haven’t conducted business this year, you might be wondering if you still need to pay the Delaware Franchise Tax. Here’s what you need to know. What Is The Delaware Franchise Tax, Again? The Delaware Franchise Tax is an annual requirement that all companies registered in Delaware have to […]
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Permanent residents of the United States, including US green card holders, can start businesses and form LLCs in Delaware. In fact, individuals from nearly any country worldwide (with the exception of restricted countries) are eligible to establish a Delaware LLC. If you’re a permanent resident aspiring to achieve the American Dream, creating an LLC for […]
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Delaware corporations need to fulfill an important legal requirement: filing the Delaware Annual Report. The Delaware Annual Report is a set of business information that needs to be submitted to the Delaware Division of Corporations each year. Filing the Annual Report is crucial for maintaining a Delaware corporation’s good standing in the state. Corporations are […]
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Limited Liability Companies (LLCs) are a popular entity choice for business owners because they’re easy to manage. But did you know that even within LLCs, there are different management structures to consider? In this article, we dive deep into the two types of management structures for LLCs: Member-Managed LLCs and Manager-Managed LLCs. What […]
Continue Reading If you’re setting up a Delaware LLC or Delaware corporation and wondering if you can serve as your own Registered Agent, the short answer is yes. However, there are some significant drawbacks to acting as your own Registered Agent in Delaware. It’s important to weigh all your options, including the possibility of engaging a Registered […]
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If you have a Delaware LLC or corporation, there will be times when you will need to check the company’s status and obtain a Delaware Certificate of Good Standing. In this article, we’ll discuss some key details of Delaware Good Standing Certificates, including how to secure one for your Delaware company, the costs involved, […]
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After forming a Delaware LLC or corporation, many business owners wonder, “What’s next?” One crucial part of running a business is maintaining your company’s good standing status. In this article, we delve into what good standing means and guide you on how to maintain your company’s good standing status in Delaware. We also discuss how […]
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Setting up a limited liability company (LLC) is a big first step towards starting or growing your business. But it takes more than just deciding on a company name to get your LLC off the ground. One essential legal requirement is appointing a Registered Agent for your company. In this article, what breakdown of the […]
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Is the first step applying for a business license or forming a Delaware LLC? Unlike the chicken or the egg, this question has a definitive answer – the LLC formation comes before the business license. In order to begin doing business under a business license, you must first have formed the applicant. The LLC should […]
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Understanding the role of a Delaware Registered Agent is an important part of incorporating a business. Did you know that Delaware law requires every company registered in Delaware to have a Registered Agent? So, if you want to form a Delaware LLC or a Delaware corporation, you will need to know how to meet this […]
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