- How do I know if I should have a Limited Liability Company or a Stock Corporation?
To decide between an LLC and a Stock Corporation requires an analysis of multiple factors. Some of those factors are the type of business, tax ramifications, future growth, retirement considerations, and employee structure, amongst others. - What are some benefits of a limited liability company?
As with deciding whether to have an LLC or a Stock Corporation, without understanding the circumstances, no benefits can be mentioned as what may be a benefit under one set of circumstances can be detrimental or irrelevant under other circumstances. One factor many members of an LLC find as an advantage is the tax treatment by the Internal Revenue Service. The IRS can disregard a Single Member LLC for tax purposes, so that that individual may only need to file a Schedule C to the annual 1040 return. Although a Multi-Member LLC is not a disregarded entity, Members are treated like a partnership for tax purposes. - Do I need employee agreements?
It is advisable that companies who have employees also have employee agreements. Employee agreements outline the relationship of employee and employer and the rights of each party. An entry level job may not carry with it the benefits of a full time salaried position, however, something should convey the responsibilities of that role. If you have no other employee policies, than an employee agreement can provide the underlying obligations of the employee. - I own a house that I want to rent, do I need transfer the property into a corporation or limited liability company?
No, you do not need to incorporate a stock corporation or form a limited liability company, but depending on your circumstances, it may be a good idea. An investment property that is transferred to an LLC or a Stock Corporation can shield the investor’s personal assets under certain conditions.
