Guide to Operating a Limited Liability Company

Limited liability companies are a relatively new form of business organization, first recognized in the United States by the State of Wyoming in 1977. Since then, legislation has been enacted in all 50 states and the District of Columbia (Washington D.C.) to allow businesses to organize as limited liability companies. A limited liability company is a separate legal entity, as is a corporation. The business structure is actually a hybrid type of business entity–between a corporation and a partnership. It is organized in a fashion similar, but not identical to, that of corporations.

Guide to Operating an S-Corporation: Officers

To the officers of a corporation fall the responsibilities of running the business. Their powers, however, are dictated solely by the board of directors. Officers can be given very broad powers to transact virtually all business for the corporation, or they can be tightly limited in their authority. A single shareholder can act as both the sole director… Read More »

Guide to Operating an S-Corporation: Directors

As explained in our Shareholders of an S-Corporation article, directors are elected by the shareholders at their annual meetings. Please note, however, that in the forms available on our site, the initial board of directors is specified in the Articles of Incorporation which are prepared and filed with the state. This listing of the directors is to comply… Read More »

Guide to Operating an S-Corporation: Shareholders

The shareholders are the persons or other business entities who actually own the corporation. The corporation ownership is divided into shares of stock in the corporation. Each share may be sold to shareholders who are then issued a stock certificate that represents their ownership of a percentage of the corporation, represented by numbers of shares of stock. Although… Read More »

Guide to Operating an S-Corporation: Overview

An S-Corporation is a type of corporation that is recognized by the U.S. Internal Revenue Service and is treated differently than other corporations in terms of Federal taxation. Some states also recognize S-corporation status for state income taxation purposes; some states do not. The only reason for becoming an S-corporation is to obtain a different method of taxation… Read More »

Guide to Operating a Sole Proprietorship

There are numerous advantages to operating a business as a sole proprietorship, but there are also pitfalls. By understanding the actual operation of a sole proprietorship and the framework of laws within which sole proprietorships operate, it is easier to avoid the difficulties that come with the sole proprietorship form of business. Sole proprietorships are the most common… Read More »

Guide to Operating a Corporation: Officers

To the officers of a corporation fall the responsibilities of running the business. Their powers, however, are dictated solely by the board of directors. Officers can be given very broad powers to transact virtually all business for the corporation, or they can be tightly limited in their authority. A single shareholder can act as both the sole director… Read More »

Guide to Operating a Corporation: Directors

As explained in our article on Shareholders, the directors are elected by the shareholders at their annual meetings. Please note, however, that in the forms available on our site, the initial board of directors is specified in the Articles of Incorporation which are prepared and filed with the state. This listing of the directors is to comply with… Read More »

Guide to Operating a Corporation: Shareholders

The shareholders are the persons or other business entities who actually own the corporation. The corporation ownership is divided into shares of stock in the corporation. Each share may be sold to shareholders who are then issued a stock certificate that represents their ownership of a percentage of the corporation, represented by numbers of shares of stock. Although… Read More »

Choosing a Business Entity: Corporations

A corporation is a creation of law. It is governed by the laws of the state where it was incorporated and of the state or states in which it does business. In recent years it has become the business structure of choice for many small businesses. Corporations are, generally, a more complex form of business operation than either… Read More »