The self employment tax rate includes both Social Security and Medicare taxes. Anyone who makes $400 or more in self employment income must pay self employment taxes. For 2017, you will pay between 15.3 percent to 16.2 percent in self employment tax if you make $400 or more in self employment income; quarterly tax payments…
All Business Law Articles
Registered Agent Services: Definition, Cost & Providers
A registered agent is your company’s official contact person and is required for every registered business in every state. Most states don’t allow your LLC to serve as its own agent, but you can personally serve if you meet state requirements. It’s best, however, to choose a third party who’s always available to receive important…
How to Create an LLC Operating Agreement [+ Free Templates]
An LLC operating agreement is a binding contract between members describing how profits and losses are shared and whether your LLC is member- or manager-managed. It serves to resolve member disputes, dictate responsibilities and more. Operating agreements aren’t always required by law but have an attorney or legal service draft one to include in filing…
C Corporation Definition, Advantages & How to Set One Up
A C corporation is a business structure reserved for larger public companies or those seeking investments. This is because, unlike LLCs and S-corps, administration is expensive and owners are subject to double taxation. Understanding what a C corporation is important for liability protection and the ability to have unlimited shareholders, different voting classes, and foreign…
How to Create a Business Partnership Agreement [+ Free Template]
A business partnership agreement is a contract between partners that contains terms like the business’s purpose, partner contributions and voting rights. A partnership agreement isn’t required to form a general partnership and doesn’t have to be filed with your state. However, have your partners sign one to create a legally enforceable document for resolving disputes….
How to Set Up an LLC on LegalZoom in 7 Steps
An LLC is a business structure that provides its members tax and liability benefits. Filing LLCs is a state-specific process, so it’s important to draft accurate articles of organization with your state. You can file an LLC yourself, but we recommend hiring an attorney or legal service to show you how to set up an…
How Much Does a Patent Cost? Types, Factors & Ways to Save
Common patent costs include legal, filing, and maintenance fees. Filing and maintenance fees range from $50 to $700 and $400 to $7,400, respectively, depending on the type of patent. Patent lawyers charge from $1,000 to $10,000-plus depending on the patent type and complexity. How much does a patent cost? Total costs range from $1,500 to…
Limited Liability Partnership Agreement Template + Pros & Cons
A limited liability partnership (LLP) agreement is a professionally licensed partnership that protects partners from personal liability of business decisions. These legal entities serve as pass-through entities for tax purposes and are organized to specifically help certain licensed professionals such as lawyers, accountants or architects. An LLP is easy to set up and administer. Commingling…
LLP vs. LLC: Differences, Advantages & Which is Best for You 2018
LLCs and LLPs are both legal entities that allow companies to engage in business activity. LLCs are typically better for most small business owners because they offer more tax flexibility, are easier to set up and have fewer restrictions on members. An LLP is better for forming partnerships to practice accounting, architecture or law. If…
5 Pros and 5 Cons of an LLC
Limited liability companies (LLCs) are the simplest and most inexpensive business structure in the United States. The pros and cons of LLCs include being easy to form, protecting owners from personal liability, and offering flexible tax options. However, LLCs also make raising money difficult and can misalign owner tax burdens and their earnings from the…
5 Sole Proprietorship Pros and Cons
A sole proprietorship is a single-member business that’s never formally incorporated with a state filing. Sole proprietorship pros and cons include that It’s easy to set up, but there’s no distinction between business and owner and no liability protection. Sole proprietorships minimize startup costs but won’t help you limit your personal liability. Regardless of how…
Free Independent Contractor Agreement Template & What to Avoid
![Free Independent Contractor Agreement Template [& What to Avoid]](https://fitsmallbusiness.com/wp-content/uploads/2018/03/Free-Independent-Contractor-Agreement-Template-What-to-Avoid-300x200.png)
An independent contractor agreement is a legal document between a business and an independent contractor, freelancer or subcontractor. It’s an all-encompassing document that outlines the details of the work to be performed, terms of the agreement, deliverables, compensation and any additional clauses. In this article, we’ll provide you with a free independent contractor agreement template to…
