Join Dana Robinson for an in-depth discussion in this video Choosing a corporate entity, part of Setting Up Your Small Business as a Legal Entity.
- What if you're operating a family business?…Most family businesses run best as an LLC.…The LLC form gives maximum flexibility…for the entity to operate like a partnership…and address who's in control,…how pay is allocated and the like.…What if you're a freelance designer?…A freelance designer faces the same questions…as a solo consultant.…If you're a one owner business, talk to your accountant…about the possible tax savings of a corporation over an LLC.…
As a matter of expedience, the LLC is the most flexible…and most commonly used entity…for single owner freelance designers.…But again, the one aspect of choosing your entity…that I can't help you with is whether one entity…or another may give you a tax advantage.…Particularly, if the business…is going to make a lot of money.…In California for example, LLC's pay a state tax…on gross receipts that corporations don't have to pay.…That fee is only after you've made your first…250,000 dollars that year.…
And for income between 250,000 and 500,000…the fee is only 900 dollars…
DISCLAIMER: This course is taught by an attorney and addresses US law concepts that may not apply in all countries. Neither LInkedIn nor the attorney teaching the course represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate basic information to help viewers understand the basics of intellectual property.
- Determine the purpose of a fictitious business name (FBN).
- Distinguish between types of entities.
- Identify required components for setting up a corporate entity.
- Recognize elements in bylaws.
- Interpret the purpose of federal tax identification.