21. What is a "Fictitious Business Name"?
Businesses that use a name other than the owner's must register the fictitious name with the county as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name. For more information, contact your state or local government.
23. What is a "Fictitious Business Name"?
Businesses that use a name other than the owner's must register the fictitious name with the county as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name. For more information, contact your state or local government.
24. If I operate my business under my personal name, is it necessary to register it someplace?
In most states you do not need to register your own name if you are using it as your business name. To determine what the requirements are in your particular state, go to BusinessLaw.gov and find the specific laws related to registering your business under the State and Local Information section.
25. What are the advantages of forming a limited liability company?
The LLC is generally considered advantageous for small businesses because it combines the limited personal liability feature of a corporation with the tax advantage of a partnership or sole proprietorship. Profits and losses can be passed through the company to its members, or the LLC can elect to be taxed like a corporation. LLCs do not have stock and are not required to observe corporate formalities. Owners are called members, and the LLC is managed by these members or by appointed managers.
26. What is the advantage of forming an S-Corporation?
The structure of an S-Corporation is identical to the C Corporation in many ways, but offers avoidance of double taxation. If a corporation qualifies for S status with the IRS, it is taxed like a partnership: the corporation is not taxed, but the income flows through to shareholders that report the income on their individual returns.
27. Are partners considered employees of a partnership or are they self-employed?
Partners are considered to be self-employed. If you are a member of a partnership that carries on a trade or business, your distributive share of its income or loss from that trade or business is net earnings from self-employment. Limited partners are subject to self-employment tax only on guaranteed payments, such as salary and professional fees for services rendered.
28. What is business law?
Business law, also referred to as commercial law, covers everything from contracts, bankruptcy, incorporation, transactions, and taxation, to banking, finance, and intellectual property. Business law encompasses a wide range of rules, statutes, and codes, as well as numerous regulations that govern commercial and business dealings. Other areas business law pertains to include business formation, organization, negotiations, planning, transactions, acquisitions, mergers, and divestitures.
29. What are some benefits of incorporating?
Corporations can issue stock, and having corporate stock allows for easier transfer of interest in the business. If a business needs to raise money, it can sell shares of stock. Also, central management such as that of a corporation has advantages such as articles of incorporation and bylaws that may protect officers and directors from liability for losses caused by them in their corporate capacity.
30. Will incorporation avoid or lessen personal liability?
A business that is properly incorporated under law, becomes a legal entity separate from its owners. This insulates the owners so that creditors can reach only the assets of the corporation. The personal assets of the owners usually cannot be reached. In cases where there is fraud, parties may seek to pierce the corporate veil.
Businesses that use a name other than the owner's must register the fictitious name with the county as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name. For more information, contact your state or local government.
23. What is a "Fictitious Business Name"?
Businesses that use a name other than the owner's must register the fictitious name with the county as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name. For more information, contact your state or local government.
24. If I operate my business under my personal name, is it necessary to register it someplace?
In most states you do not need to register your own name if you are using it as your business name. To determine what the requirements are in your particular state, go to BusinessLaw.gov and find the specific laws related to registering your business under the State and Local Information section.
25. What are the advantages of forming a limited liability company?
The LLC is generally considered advantageous for small businesses because it combines the limited personal liability feature of a corporation with the tax advantage of a partnership or sole proprietorship. Profits and losses can be passed through the company to its members, or the LLC can elect to be taxed like a corporation. LLCs do not have stock and are not required to observe corporate formalities. Owners are called members, and the LLC is managed by these members or by appointed managers.
26. What is the advantage of forming an S-Corporation?
The structure of an S-Corporation is identical to the C Corporation in many ways, but offers avoidance of double taxation. If a corporation qualifies for S status with the IRS, it is taxed like a partnership: the corporation is not taxed, but the income flows through to shareholders that report the income on their individual returns.
27. Are partners considered employees of a partnership or are they self-employed?
Partners are considered to be self-employed. If you are a member of a partnership that carries on a trade or business, your distributive share of its income or loss from that trade or business is net earnings from self-employment. Limited partners are subject to self-employment tax only on guaranteed payments, such as salary and professional fees for services rendered.
28. What is business law?
Business law, also referred to as commercial law, covers everything from contracts, bankruptcy, incorporation, transactions, and taxation, to banking, finance, and intellectual property. Business law encompasses a wide range of rules, statutes, and codes, as well as numerous regulations that govern commercial and business dealings. Other areas business law pertains to include business formation, organization, negotiations, planning, transactions, acquisitions, mergers, and divestitures.
29. What are some benefits of incorporating?
Corporations can issue stock, and having corporate stock allows for easier transfer of interest in the business. If a business needs to raise money, it can sell shares of stock. Also, central management such as that of a corporation has advantages such as articles of incorporation and bylaws that may protect officers and directors from liability for losses caused by them in their corporate capacity.
30. Will incorporation avoid or lessen personal liability?
A business that is properly incorporated under law, becomes a legal entity separate from its owners. This insulates the owners so that creditors can reach only the assets of the corporation. The personal assets of the owners usually cannot be reached. In cases where there is fraud, parties may seek to pierce the corporate veil.
No comments:
Post a Comment