|
|
LLC * California Limited Liability Company - An Overview Richard A. Chapo
Many people are surprised to learn that the LLC business entity is a fairly recent phenomenon. Wyoming was the first state to legislate the creation of LLCs in 1977. Most states didn't jump on the LLC bandwagon until 1988 when the IRS classified the LLC as a pass through entity for tax purposes. This ruling turned LLCs into the popular monster they are today. Now every state has legislation allowing the creation of LLCs and California is no different.
What Are The Advantages To Forming A LLC?
The LLC business entity offers many advantages to small businesses. An LLC is going to provide a shield between your business activities and personal assets identical to a corporation. Unlike a corporation, there are far fewer corporate formalities. Instead of setting up payroll, you can take draws from the entity. You are not required to maintain a balance sheet, although this is recommended. In short, the LLC entity is all about flexibility.
Should I Form A California LLC For My Business?
Maybe. While LLCs offer significant flexibility to small businesses, California charges an LLC tax that can really cramp your profits. This tax is charged on your gross revenues for the "privilege of doing business in California" as an LLC. Lucky you. Depending upon your situation, forming an "S" corporation may be a better option in California.
Additional Tax Issues
California allows a single person to own an LLC. This causes problems from a tax perspective. The IRS doesn't really acknowledge the existence of LLCs owned by one person. The IRS takes the position that you must have two people to be taxes as a partnership. Accordingly, it treats single owner LLCs as sole proprietorships. The problem with this result is that you end up paying self-employment taxes.
While LLC structures provide significant flexibility, the structure is not always the best choice for a small business. Make sure you speak with competent tax counsel prior to forming an LLC for your business.
-------------------------------------------
No Change This Year In Miss. Housing Tax Break Law - New York Times
No Change This Year in Miss. Housing Tax Break LawNew York Times(AP) -- A tax credit opposed by Mississippi's county officials because they say it gives certain housing developers too big of a break...
-------------------------------------------
-------------------------------------------
Forms And Publications
Welcome to the forms and publications resource page, the official source of IRS tax products. The links below provide methods to access and acquire both electronic and print media.
TurboTax® Tax Preparation Software, FREE Tax Filing, Efile Taxes ...
TurboTax is the #1-rated, best-selling tax software. Free Edition includes free IRS efile. Easily prepare your tax return and file income taxes online. Choose Easy.
-------------------------------------------
Richard A. Chapo is with <strong>SanDiegoBusinessLawFirm.com</strong> - This article is for information purposes only. Nothing in this article is intended to address the reader's specific situation nor does it create an attorney-client relationship.
|
| |
Online Tax Preparation General Articles about Taxes
Estate Tax Repeal or Revision?
by Alan L. Olsen
In 2010 the estate tax will be repealed and the gift tax rate will fall to 35%. However, this repeal is effective only for that year and the estate tax will be reinstated in some form the very next year...
Tax Software Alternatives
by David C Skul
There are many different tax programs, which are adequate to different kinds of needs, so the users have various options. For taxpayers with more complex tax situations, TurboTax software would be the...
Get A Tax Accountant And Leave April To The Showers
by Tax Attorney, Tax Course, Tax Help
For most US citizens, April 15 mans only one thing: it's time to pay Uncle Sam his due. And in the weeks leading up to April 15, taxpayers in the US frequently develop all the signs of tax preparation...
What your California Tax Lawyer Should Know.
by Frank Vanderlugt
They say that there are two things that are inevitable in life: death and taxes. But even though these are both inevitable, there are ways to put off or limit the inevitable by using knowledge.If you are...
Choosing A Business Tax Service
by Don Kransteuber
There are a number of ways that you can find tax services companies. The yellow pages is a good place to start for companies in your area but, depending on where you live, the list of names may be extremely...
|
|
| |
Business Tax Articles of Interest
LLC vs Corporation: Which Is Best?
by Gabriel Adams
Taking the step beyond having a sole proprietorship is a good idea for nearly any business. After all, as the owner of a sole proprietorship, you and your business are considered to be one and the same....
Can Your LLC Elect S Corporation Tax Status
by Robert Montgomery
Yes, an LLC can be taxed similar to an S corporation. You may be wondering, why would you even want this type of tax treament? Read on and I'll explain.Owners or members of an LLC have the option to choose...
Do-It-Yourself LLC Formation: Easy and Fast
by Stephen L. Nelson, CPA
You've decided you need an LLC for your real estate investing or small business. But the attorney wants several hundred dollars or more to fill out the paperwork. Isn't there a cheaper way to set up an...
Free Information and FAQs you Need to Know to Form an LLC or Incorporate in Delaware
by Chris Einkauf
1. Why should I incorporate / form an L.L.C. in Delaware?When forming a corporation or LLC, you should choose the state of incorporation carefully. This is your opportunity to forum shop for the law you...
LLC vs S Corporation: Which is Better?
by Stephen L. Nelson, CPA
"S Corporation or LLC?" is a common question for new business owners. I have several people call me each week asking this.I always tell them the question is impossible to answer. And here's why. An LLC...
dmg management LLC Releases Statement of Separation From Big Tigger’s Street Corner Foundation
by Natasha Rennie
dmg management LLC Releases Statement of Separation From Big Tiggers Street Corner Foundation Washington, DC (July 18, 2005) -- dmg management LLC, a sports and entertainment marketing firm based in Washington,...
More Options to a Self Directed IRA
by Joshua Geary
If you want to have more control over your retirement accounts than what is typically found with ROTH, and Traditional IRA's: then consider the acquisition of a self-directed individual retirement account....
Commercial Lender Secures 100% financing for Apartment Complex
by Sam Jackson
Linda Hogan, a loan officer with Rogers Funds LLC , Commercial Lender , has announced that the firm recently closed $15,500,000 in Commercial mortgage financing for an apartment complex in Boston, MA....
How To Form An LLC
by David Gass
A Limited Liability Company or LLC is a mixture between a partnership and a corporation. An LLC protects the owners from personal liability on the company's debts just like a corporation with the tax-benefits...
|
|
Disclaimer: The links, articles, news items give you information that has been collected from many independent sources.
The articles, links or news items are for general information only. Their appearance on the web site does not mean the article, link or news is endorsed by the owner of the web site. Use this information at your own risk.
|
| |