Form a Company

Post image for Basic Training: K is for Kamikaze Business Formation

You know . . . and I know . . . that faster is not always better, no matter how much the car companies try to push the “0 to 60 in 3.6 seconds” pitch. Think food, sex, rest, travel. You don’t necessarily want to rush these experiences. Quick, split-second decisions are not the best […]

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Q.:  I recently became a sole owner of an LLC due to a partnership split. I am renaming the LLC due to the split. Is it necessary to obtain a new employer tax ID (also known as an “EIN”) for the new LLC?   A.:  Generally, a simple name change of an LLC does not […]

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Q.:  I understand you do not let executive session board minutes into anyone but the board of directors’ hands. In fact, I have heard that you pass these board minutes out in executive session and they are then collected and given back to, in our case our attorney who is, chairman of the board and […]

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Post image for Basic Training: A is for Adolescent

Ah, youth. I wish I had been so motivated to change the world when I was a teen. I was more concerned with how geeky I looked in braces and participating in nerdy things like student government. Here’s how this week’s teen wants to make a difference: Q: I am trying to start up a […]

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Q.:  I have just received my DBA and I’m ready to begin my own business.  I would like to clarify once for all if I can use (as I would like) my personal cash account for business purposes too. A friend of mine says so but on my bank website looks like I need a […]

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Q.:  I am the sole shareholder and director of a closely held corporation. I have failed to keep my board minutes book updated for several years. How do I go back now and update the board minutes? I know that corporate records cannot be falsified, so if I write minutes for board meetings that should […]

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Q.:  What kind of financial reports are minimally required of an LLC, and how often should they be made available to the partners?   A.:  Minimally, LLCs are required to file annual tax returns for their company financial reports and the members (owners) of an LLC would receive a copy of Form K-1, which is […]

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Q.:  What document do I need to change who the sole member of an LLC is? A.:  The sole owner of an LLC owns 100% of the membership interests of that LLC.  What you require is called an assignment, which is a document that transfers the membership interests (company ownership) to you and states the […]

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Post image for Attend to Your Corporate Housekeeping

Yes, they’re cumbersome, but don’t ignore the corporate formalities if you don’t want creditors poking into your personal assets. Congratulations! You’ve taken the important step of protecting your personal assets by forming a corporation or limited liability company. But just as giving birth is only the beginning of your responsibilities of caring for a baby, […]

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Post image for But What Does It Mean? ‘Piercing the Corporate Veil’

Yes, legalese is its own language. Like the Latin spoken at the Vatican, it’s truly understood only by a few. So for the rest of us, here’s a handy definition of a term relevant to all business owners (whether a corporation or an LLC): “piercing the corporate veil“ It’s considered a privilege to be able […]

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