A Primer on LLCs

The limited liability company (LLC) is a relatively new legal entity which got its start in the late 1980s. As the name implies, an LLC provides limited liability to its participants called “members” while containing the assets and operations of the business enterprise. Please keep in mind that LLCs are

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How to Incorporate Your Sole Proprietorship

Many entrepreneurs begin their startup as a sole proprietorship. Eventually, some sole proprietors desire to incorporate so they can reduce their personal liability and protect their personal assets. But the act of incorporating a going business does not, by itself, transfer the current business being conducted as a sole proprietorship

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Why Bylaws are Important for Your New Company

The Secretary of State fails new businesses by not requiring you to record your company bylaws. It signals to the entrepreneur that articles of incorporation are more important than company bylaws, leaving bylaw drafting a mere afterthought. Every business is different and has issues that need to be addressed in

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The Theory Behind Subchapter S

Subchapter S status was enacted so that startup companies and other entrepreneurs would not shy away from choosing a corporate form of organization because of the potential for double taxation. A corporation that elects Subchapter S status is treated for federal income tax purposes as a partnership, but maintaining the

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