LLC Tag

Flow-Through Taxation A flow-through entity is a legally designated entity type that allows business income to flow from the business to the business owners in the form of taxable income. The entity itself is not taxed and any business losses incurred or income earned is treated...

For individuals with multiple properties or businesses, an alternative to creating multiple limited liability companies (LLC) is to form a series LLC. This special form of LLC, first developed by Delaware, contains many benefits, but is also filled with limitations that business owners should be...

At the formation of a limited liability company (LLC), an important consideration is the writing and adopting of the LLC operating agreement. One aspect that should be included in the operating agreement is how the profits (or losses) will be distributed among the members of...

US individuals that form an LLC probably do not give a lot of thought to opening a bank account for their new business, however for foreign individuals forming an LLC the process is not that straight-forward. First, the LLC must obtain an Employer Identification Number...

For federal income tax purposes, the IRS view is that a partner (or member of an LLC that is taxed as a partnership) cannot be an “employee” for tax purposes and instead must be taxed as a “partner” on their share of the LC’s income....

In a little noted but hugely significant provision of the American Taxpayer Relief Act of 2012 (“ATRA”), Congress has extended the 100% exclusion from tax for gains from the sale of Qualified Small Business Stock (QSBS) held for more than 5 years. Although it seems...

Delaware LLCs required to pay taxes in CaliforniaMany limited liability companies (LLCs) are formed under non-CA law (often Delaware), even if they are managed from California, to obtain the perceived benefits of Delaware law.  The downside of filing in California is the $800 per year...

The Internal Revenue Service (IRS) has finally issued final regulations on the tax treatment of non-compensatory options and convertible instruments issued by a partnership. These rules are particularly interesting to companies that have formed as LLCs taxed as a partnership for tax efficiencies but have...

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