Choosing Between a Sole Proprietorship, Partnership, Corporation, or LLC

2017-09-25T20:55:07+00:00 March 23rd, 2016|

When  should you choose a sole proprietorship?Although there is no hard and fast rule, if you are a new business and will be the only owner, I generally recommend that you do not form an LLC or Corporation but operate as a sole proprietorship. The main exception to this rule is if you have substantial assets [...]

Pros and Cons of a Corporation

2017-09-25T20:57:08+00:00 March 23rd, 2016|

Pros and Cons of a Corporation The decision as to whether or not to incorporate is important to your business. Some of the key pros and cons are described below, but you may want to consult with an attorney to discuss how they affect your business. PROS Protection of personal assets A properly formed [...]

S Corporations – Avoiding Self-Employment Tax

2017-09-25T20:58:07+00:00 March 23rd, 2016|

Should I elect S Corporation status? Many small business can save on taxes when operating as an S Corporation. My general rule of thumb is if you can pay yourself a reasonable salary from you company, and still have $20,000 of profits left to take as a distribution, an S corporation can save taxes for you Can [...]

California Corporation Formation Checklist

2017-09-26T17:00:57+00:00 March 18th, 2016|

Below is a checklist to help guide you through the process of forming a California Corporation Formation Checklist. Click here to download a Corporation Formation Checklist that is substantially the same. Many of the items in this checklist have links to help you understand what is involved in each step. Please feel free to contact [...]

Forming a Corporation

2017-09-25T23:25:18+00:00 March 17th, 2016|

Filing Form ARTS-GS When forming a Corporation in California, you must file Articles of Incorporation with the secretary of state; generally one will use ARTS-GS in California, which forms a General Stock Corporation with the Secretary of State. Forming an S corporation The phrase “forming an S corporation” is really a misnomer. To get an [...]

Choosing a Corporate Name in California

2017-09-25T23:27:17+00:00 March 17th, 2016|

Form ARTS-GS Part 1 – Choosing a Corporate Name in California When forming a Corporation in California, you must pick a name. If you are using Form ARTS-GS, which I recommend, it is entered in box 1. Step 1: Pick a name While you may already have a name under which you operate your business–a fictitious [...]

Step-by-Step Guide To Electing S-Corp Status

2017-09-26T17:02:22+00:00 March 17th, 2016|

Forming an S corporation? Here’s your step-by-step guide to the timely and proper filing of Form 2553 for a new corporation. (Click here for our Corporate Formation Checklist.) When forming a corporation, you must complete Form 2553 “Election by a Small Business Corporation,” and send it to the IRS. The purpose of this form [...]

Minutes for Board of Directors

2017-09-25T23:32:53+00:00 March 17th, 2016|

Minutes for Board of Directors The minutes of a board meeting are crucial. This post looks at how minutes are valuable, both internally and externally, and outlines the general form that they should take. Finally, it provides a sample you can compare with your own minutes to be sure everything is covered. Minutes for [...]