Contact a qualified business attorney to help you navigate the process of starting a business.
Q What are the benefits of having a limited liability company?
AThebusiness licenses and permitsthat a small business will need will vary depending on the business industry and the location of the business. Business licenses and permits are issued at the federal, state, city, and/or county levels. All businesses will usually need a city an/or county business license, while most businesses will also need a federalemployment identification numberEIN. You can check to see if you need an EIN and apply on theIRS website. Depending on your business industry, you made need otherfederal business licensesas well.
Being in compliance with all applicable laws and regulations when starting a business can help prevent trouble for your business in the future. Abusiness organizations attorneycan provide guidance as to the correct steps in starting your business, including information on which business licenses you will need and the best business structure for you.
AAlimited liability company LLCcombines the best aspects of a sole proprietorship and a corporation. Like a corporation, the owner of an LLC is protected from personal liability. However, unlike a corporation, an LLC is not required to observe corporate formalities. There is a tax advantage to forming an LLC as well. An LLC is not subject to double taxation like a corporation, but rather enjoys passthrough taxation, which is similar to a partnership or sole proprietorship.
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AAcorporationis a legal entity that is separate from its owner, which means that owner is shielded from personal liability except for certain situations. Corporations are subject to double taxation profits are taxed both at the corporate level and when distributed to shareholders. In order to maintain corporate status, the corporation must observe various formalities such as conducting annual meetings, recording meeting minutes, electing directors, and issuing stock certificates. While corporations are a popular business structure, they are complex and have more startup costs than other legal structures.
AThe availablelegal structures for businessesinclude sole proprietorships, partnerships, limited liability companies, and corporations. Each of structure will have its own requirements for formation and maintaining status. The tax status and owners personal liability will also vary depending on the of business structure.
Q What are my options for legal structures for my business?
AAfictitious business nameis a name that is different from the legal business name on file with the state for a sole proprietorship, it would be the business owners name. Generally, fictitious business names must be registered with the state and/or county. Since registration requirements vary from state to state, its important to check with your state laws regarding fictitious business names.
There are many things to consider whenstarting a business. Here are answers to some frequently asked questions about the legal aspects of starting a business.
AWhile your tax obligations will vary depending on the of legal structure you choose for your business, there are a fewstartup tax issuesto be aware of. First of all, it is imperative that you keep good records. You should also be sure to keep your business and personal taxes separate. Businesses can alsodeduct certain business expenses, which can lower the taxes your business owes.
Q What will my tax obligations be for my business?
Q What s of licenses would a small business need and where do I get them?legal businessStarting a Business Legal FAQs