All Posts Tagged Tag: ‘limited liability’

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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