Form a Company

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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Workshak’s post on limited liability partnerships (which pulls from Taxgirl’s post on ProBlogger) is right about one thing:  that limited liability partnerships (LLPs) are pass-through entities. What the post doesn’t address is that the LLP statutes in many states make the form less-than-ideal for many multiple-owner businesses.  For example, in some states, LLPs can be […]

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Post image for Why Corporate Housekeeping is Crucial

Lest my previous post be construed as just a plug to pay lawyer fees for no reason, here’s the primary reason that kind of corporate housekeeping is so important: You risk exposing your personal assets to creditors if you don’t do them. What? Wasn’t protecting your personal assets the whole point of forming an LLC […]

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