Incblog for Entrepreneurs

Covering entrepreneurship and business start up questions for non-residents and US citizens.

 

Apr 29 2010

What is the liability protection of an LLC? How do you maintain and protect it?

by John Gordon | 07:04 GMT

There is much literature praising the benefits of LLCs as a new business form for the small to medium-size business owner. LLCs are indeed an advantageous business model because, unlike corporations, profits and losses can pass directly through to the owner’s personal income tax return while the owner’s personal assets are shielded from liability. But this protection is not unlimited, and if the owners of an LLC do not take adequate precautions, they can find themselves facing a potential lawsuit without the benefit of having their personal assets protected from a judgment against the LLC.

 

Apr 22 2009

Choice of State and expanding to new locations

by John Gordon | 11:04 GMT

Often we get asked, where should we incorporate? What’s all this about Delaware? Here’s our rules of thumb: If you just have one location, and sell locally, you’re probably best off incorporating in your state, acting as your registered agent. (Standard rule applies, of course: get a good lawyer and a good accountant first, before […]

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Apr 17 2009

Husband and Wife LLC members: is it a partnership?

by John Gordon | 10:04 GMT

If a husband and wife are both members of an LLC and file their (US) tax return jointly, are they considered one taxpayer or two? If they are one taxpayer, it would mean that the LLC is a single-member LLC, and therefore a disregarded entity who need only add the LLC’s profits and losses on […]

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