The limited liability company (LLC), S corporation (S-corp), and C corporation (C-corp) are all business structures that you may be considering. The LLC is a low-maintenance legal entity that’s best for a simple business. An S corporation is a tax status created so that business owners can save money on taxes. A C corporation is…
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LLC Electing S-corp Status: What, Why & How
A limited liability company (LLC) electing S corporation status for tax purposes could lessen a business’ tax bill by thousands of dollars. An LLC pays a 15% self-employment tax on profits, while an S-corp only pays 15% on the owner’s salary, not the entire profit. You can file IRS Form 2553 to elect as an…
How to Use Trademark.com to Protect Your Trademark From Infringement
Trademark.com, which sponsored this article, is a web-based service that helps small business owners easily and affordably protect their brand identity. Whether you’re ready to trademark your brand with the United States Patent and Trademark Office (USPTO) or already have a mark on-file, can simplify the trademark registration and monitoring process. The service helps you…
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…
Taxpayer Identification Number (TIN): Definition & How to Get One
A taxpayer identification number (TIN) is a unique identifier for a business, employee, or contractor that can be used on US government tax forms. Many people already have a tax ID number in the form of an employer identification number (EIN) or Social Security number (SSN). Having a TIN allows a business to obtain a…
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…