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All Posts Tagged Tag: ‘corporation’

From a Caterpillar to a Butterfly: Converting Corporations to LLCs

Limited Liability Companies (LLCs) are almost always a better choice of entity than Corporations, yet not all businesses had the good fortune of being born as LLCs. There is hope for these corporate dinosaurs, however, as relatively recent changes in the law have made it easier to convert a corporation into an LLC.

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S-Corporation vs. Limited Liability Company (Part 2)

Almost everyone going into business with a prospective partner does so hoping for the best, but few business people actually prepare for the worst. Forming a separate business entity as a vehicle for their business is one way to prepare for possible, personal exposure to obligations the business has with third parties.

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S-Corporation vs. Limited Liability Company (Part 1)

Many people are familiar with the “flow through” tax benefits enjoyed by the so-called “S” corporation. Instead of paying corporate tax, the corporation’s income or loss “flows through” to the owners’ tax returns every year, regardless of how much cash is actually received. For many years, and mostly for this very reason, a properly structured “S” corporation has been the optimal legal entity for a private company.

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How Thick is Your Corporate Veil? Minimizing Personal Exposure for Business Activities

Among other things, investors and entrepreneurs use corporations to limit their liability for business obligations to the amount they have invested in the corporation. This “limitation of liability” feature protects the owners from having to pay out-of-pocket for damages they did not personally cause.

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Legal Maneuvers to Consider in a Down Economy

Every rain cloud has a silver lining and even amid the gloom of “The Great Recession” opportunities abound. Put simply depressed valuations present opportunities for those with cash or access to it. Moreover, from an estate tax perspective, historically low interest rates and a looming increase in tax rates makes 2010 the best year in a long time to implement […]

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A Business Law Myth

Business Law Myth: 51% ownership equals total control of the business. For certain “major decisions” unanimous consent might be required, depending on whether the business is governed by the partnership, corporate or LLC statute. Moreover, majority owners assume certain fiduciary duties that often prove restrictive… Recommend on Facebook Share on Linkedin Tweet about it Subscribe to the comments on this […]

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