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26Feb 2020

What/who is an incorporator?

This is the person who signs and causes the filing of the Articles of Incorporation (or, in the case of an LLC the Articles of Organization) with the designated state authority. In a small business, this is usually the owner/shareholder/member. Some folks have their attorney sign the documents to help expedite the process, and that’s […]

26Feb 2020

What are Officers?

Officers, in a corporate (and even LLC) setting are the individuals who perform the tasks of managing and operating the entity. In California, every corporation is required to have at least three officers: CEO, CFO, and Secretary. There can be more, but no less. LLCs don’t typically have officers, but they may at the discretion […]

26Feb 2020

What’s a director, and what’s the difference between a director and an officer?

Directors . . . direct! They set policy and guide the company with its business and direction. Directors are like the captains of ships; they know where the ship should go, and they tell the officers to make it happen.

26Feb 2020

Can one person be all of the officers?

In a word, yes. Is that always advisable? No, but it’s typical in a very small single-shareholder corporation.

26Feb 2020

Can anyone own an S Corporation?

You probably didn’t think to ask this until you saw it was a question. Answer: No. S Corporations are restricted with respect to their ownership, one of the key factors why they can’t always be used. For example, no more than 100 shareholders can own shares in an S Corp, no shareholder can be a […]

26Feb 2020

Can anyone own an interest in an LLC?

And therein lies a major difference between LLCs and S Corporations – because LLCs can be owned by practically anyone or anything, making them very useful for pass-through taxation while being owned by other entities.

26Feb 2020

When I form my corporation or LLC, is that a license?

No, but thanks for asking a weird question. You’re likely getting confused with some industries, like talent management, that may require you to obtain a license from a particular state agency. The formation of the entity doesn’t trigger automatic licensure, nor does it automatically require you to get a license for your business. Licensure for […]

26Feb 2020

What’s a Tax ID number?

This is much more critical than some people think. A tax ID number is your corporation or LLC’s separate tax identity. Whether it’s opening a bank account, setting up payroll, or filing a tax return, this number is THE number for all purposes. Here’s how you can get one (good luck to you) or here’s […]

26Feb 2020

How do I get a tax identification number?

You can go to the IRS’s website, and go through their multi-page question and answer pages. Make sure you’re ready with your SS-4, as the IRS may ask for that over the phone if it doesn’t like one of your answers. (PS, the IRS is not in the habit of liking.) Important note: you need some kind […]

26Feb 2020

Do I need an attorney for this process?

YES! Of course!! Actually, no. Though “need” is a funny word. An attorney is not required to incorporate an entity. But if you learn nothing else from bouncing around this website, it’s that there may be a great deal of things to consider, traps for the unwary, and housekeeping items that may make or break […]

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