Business owners start businesses for a variety of reasons. They have discovered or created a great new product. They might have felt they could do a better job of providing a service. Some business are born out of necessity after a layoff. What ever the reason for formation all businesses have one common future, the person who started the business will leave the business. While this departure sometimes occurs as Read More
Classification of Your Workers as Employees or Independent Contractors
The IRS is very interested in whether companies have properly classified their workers as employees or independent contractors. Why? Because if an individual is classified as an employee, he or she is subject to federal income tax and employment tax withholding when the wages are paid. This means the government gets their tax money right away. Wages and taxes withheld are reported via the Form W-2. If an individual Read More
Estate Planning for Business Owners
Business owners like all individuals should start with the basics. There are four documents that form the cornerstone of all estate planning. They are a will, durable power of attorney, medical power of attorney and directive to physician (living will). Non-traditional families and same sex couples should consider some additional documents to provide similar coverage available to married couples under the Read More
Issues to Consider When Forming a Limited Liability Company
When you create an LLC you are creating an entity that is completely separate from the owners who are called members. The LLC will continue to exist until dissolved. The LLC combines many of the strengths of both corporations and partnerships. The members have liability protections similar to a corporation. They are shielded from liability for the LLC’s debts, obligations and liabilities. However, they have the Read More
Small Business Owners Should Plan for the Three D’s
You form a partnership with a business colleague. Everything is going well, business is growing and life can’t get any better. Then your business partner’s husband asks for a divorce. Does your partnership agreement address the issues relating to the divorce of a partner? What if your partner is your spouse and they have asked for a divorce? You are running a successful business as a sole proprietor. Driving Read More
Issues to Consider When Forming a Partnership
Selecting your business structure is one of the most important decisions you will make. You should take the time to consider all of your options before selecting a business structure. There are several types of partnerships available to business owners. A partnership is created anytime two or more people come together to conduct business for profit. Partnerships are governed by partnership agreements and each Read More
Issues to Consider When Choosing to Incorporate
Selecting your business structure is one of the most important decisions you will make. You should take the time to consider all of your options before selecting a business structure. When you create a corporation you are creating an entity that is completely separate from the owners and shareholders. The corporate entity will continue to exist until dissolved. It is this separate entity status that provides the Read More
Four Basic Business Entities
Sole proprietor is the easiest business to start. This requires nothing but that you begin providing a product or service and you must file an assumed name certificate in the county where you will be working. While this is the easiest form it has no liability protection at all. Partnership is a business structure that includes two or more people. If no formation papers are filed with the secretary of state what is Read More
