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Add You - Four Reasons Not to Form a Limited Liability Company
Here is my personal list of things to do at your networking group:(1) Bring your business cards. Sound simple? Well, I regularly meet people at networking groups who have forgotten their cards or their cards are at the printers. Keep an ample supply in your car, briefcase, and pockets; you never know when you're going to meet someone important to your business.(2) We
This extra complexity stems from the fact that a corporate tax return requires balance sheets once the business has more than $250,000 in revenue or assets. And to produce a balance sheet, you
Now days, most people do not start a job with the knowledge or belief that they will be doing the same job for the rest of their life. As technology and the way we work changes, many people expect to have several job or career changes during their working life. So how you decide as to which job or career is the one for you?Finding the job that fits your personality, y
In spite of these big benefits, four good reasons exist for not forming a limited liability company for your next business. Here they are:
State Income & Franchise Taxes
All states charge at least a modest fee—sometimes less than $100—to set up an LLC. And that’s not so bad, but here’s what is bad. Some states like California also levy additional unfair annual fees and franchise taxes on even the smallest LLCs.
California’s minimum annual LLC franchise tax, for example, is a whopping $800. Ouch.
If you’re operating in states with high annual LLC fees and taxes, you need to think twice about using an LLC unless your business is big enough to easily shoulder any extra fees and taxes.
Complicated Bookkeeping and Accounting
For sole proprietors, an LLC may complicate your accounting if you choose to have the LLC taxed as a regular corporation or an S corporation.
This extra complexity stems from the fact that a corporate tax return requires balance sheets once the business has more than $250,000 in revenue or assets. And to produce a balance sheet, you
The homebased and small business owner is the "Unsung Hero". Why? The small business owner and today even the homebased business owner are the cornerstones of our society. The homebased business owner employs a number of independent contractors. Small businesses account for a large percentage of our economic work force. Think of the homebased and small business owner as t
In spite of these big benefits, four good reasons exist for not forming a limited liability company for your next business. Here they are:
State Income & Franchise Taxes
All states charge at least a modest fee—sometimes less than $100—to set up an LLC. And that’s not so bad, but here’s what is bad. Some states like California also levy additional unfair annual fees and franchise taxes on even the smallest LLCs.
California’s minimum annual LLC franchise tax, for example, is a whopping $800. Ouch.
If you’re operating in states with high annual LLC fees and taxes, you need to think twice about using an LLC unless your business is big enough to easily shoulder any extra fees and taxes.
Complicated Bookkeeping and Accounting
For sole proprietors, an LLC may complicate your accounting if you choose to have the LLC taxed as a regular corporation or an S corporation.
This extra complexity stems from the fact that a corporate tax return requires balance sheets once the business has more than $250,000 in revenue or assets. And to produce a balance sheet, you
Unclaimed or uncashed payroll checks handled incorrectly by an employer can result in serious trouble for the employer. Prior to implementing a policy on how your company handles these types of checks, there are several issues to consider:Every state has escheat laws that affect unclaimed or abandoned property. In general the laws require that such property, including the f
California’s minimum annual LLC franchise tax, for example, is a whopping $800. Ouch.
If you’re operating in states with high annual LLC fees and taxes, you need to think twice about using an LLC unless your business is big enough to easily shoulder any extra fees and taxes.
Complicated Bookkeeping and Accounting
For sole proprietors, an LLC may complicate your accounting if you choose to have the LLC taxed as a regular corporation or an S corporation.
This extra complexity stems from the fact that a corporate tax return requires balance sheets once the business has more than $250,000 in revenue or assets. And to produce a balance sheet, you
Saturday, April 1st is April Fool’s Day. April Fools' Day, sometimes called All Fools' Day, is one of the most light-hearted days of the year. Its origins are uncertain. Some see it as a celebration related to the turn of the seasons, while others believe it stems from the adoption of a new calendar.Depending upon how you look at it, you are either the mastermind of pranks
If you’re operating in states with high annual LLC fees and taxes, you need to think twice about using an LLC unless your business is big enough to easily shoulder any extra fees and taxes.
Complicated Bookkeeping and Accounting
For sole proprietors, an LLC may complicate your accounting if you choose to have the LLC taxed as a regular corporation or an S corporation.
This extra complexity stems from the fact that a corporate tax return requires balance sheets once the business has more than $250,000 in revenue or assets. And to produce a balance sheet, you
There are many ways to motivate employees. We will take a closer look at the possible motivational tools in this article and will discuss the possible outcomes and the effect it might have on the organizational performance.To motivate someone, one has to find something in that person that will make that person want to do whatever the motivator asked for. Subsequently, the
This extra complexity stems from the fact that a corporate tax return requires balance sheets once the business has more than $250,000 in revenue or assets. And to produce a balance sheet, you need to use correctly a full-blown accounting system such as QuickBooks. Checkbook programs like Microsoft Money and Quicken don’t really work.
Be careful that you don’t over-complicate your accounting without good reason.
Extra Paperwork and Red Tape
A limited liability company burdens you with significantly less red tape and paperwork than a corporation. Which is awesome. However, an LLC still requires more paperwork than a simple sole proprietorship. (Often a sole proprietorship requires no paperwork.)
At a minimum, for example, an LLC will probably be required to file annual reports with the state agency that supervises limited liability companies and corporations. An LLC should probably have an operating agreement. In some states, LLCs also have the paperwork to file depending on the type of business.
Modest Liability Protection
Even if you operate your business as an LLC, you may not get much liability protection if you do all the work yourself (because you’re a one-man or one-woman operation) or if you have to provide personal guarantees to lenders, customers and vendors.
This may be you don’t get much or any extra liab
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