How to Pick the Right Business Ownership Structure
Are you thinking about signing a non-competition, non-solicitation or nondisclosure agreement? If you are, it’s important to understand what you’re agreeing to.These agreements can have a significant impact on your ability to work in your chosen field. Thus, it’s crucial to know what you’re signing up for. In this blog post, we’ll cover their basics … Read more
Most investors in startups buy their securities. The most common security is a share of stock. When a startup decides to issue stock, it must register its stock offering with the Securities Exchange Commission (SEC) unless there is an exemption for the offering. I’ve written about the most common exemptions, in Regulation D. That regulation requires … Read more
Let’s suppose that you have gotten your startup off the ground. You had a great idea. You organized your startup as a corporation. Next, you executed a unanimous consent to issue stock and begin business. Then you approved the corporate bylaws. Finally, you obtained an Employer Identification Number from the IRS. Now you are ready … Read more
Here’s how it works for sales tax: It used to be that a business had to have a physical presence in a state to be taxed there. Last June, the US Supreme Court held in South Dakota v. Wayfair that states can tax goods and services provided that they were sold to or rendered to … Read more
Thinking about setting up your business as a Nevada LLC? Here are the steps you must complete: 1. Pick your name and check to see whether it is available. Business names can’t be too much like each other because that is confusing to the public. You can check to see if anyone already has your … Read more
The California Supreme Court recently decided an important case. It clarified what an independent contractor is as opposed to an employee. The Dynamex Operations case considered the status of same-day courier and delivery drivers. The company used to classify the drivers as employees. But in 2004 the company changed them all to independent contractors. Later, … Read more
According to the Tax Foundation’s State Business Tax Climate Index, Wyoming is the best state in the United States in which to do business. One of the reasons for this ranking is that Wyoming has no individual or corporate income tax, no estate tax, no tax on capital gains or on gifts. Wyoming also has … Read more
How many tax forms does the IRS have? I don’t think anyone knows. Fortunately, we need to understand only a handful of them to know what your company must file, what your company gives to you, and what you must file. US citizens must file one of three federal income tax returns. They are Form … Read more
Congress passed the Tax Cuts and Jobs Act (TCJA) in late 2017, effective January 1, 2018. This statute included substantial changes to taxation of corporations and LLCs. The federal corporate income tax rates used to be graduated. Corporations making not more than $50,000 per year had a tax rate of 15%. Over $50,000, the rates fluctuated, … Read more
One of the questions clients frequently ask when organizing a corporation is how many directors must they have, how many officers and what types of officers they need, and how many shareholders there must be. Normally, the answers are at least one director, at least two officers and at least one shareholder. But the requirements … Read more