A domestic and foreign LLC refers to the state where the LLC is created. Registering your business as a foreign LLC (also known as a foreign qualification) is required under certain circumstances when you operate your business outside of the state in which you’ve formed your LLC. The purpose of registering is to meet the regulatory and tax requirements of the foreign state. Despite the term “foreign”, a foreign LLC operates domestically within the United States. Your LLC isn’t considered foreign in the state where you initially registered it, only in the states where you’ve expanded its opera ..read more

Is it better to form a Limited Liability Company (LLC) or a C Corporation? Many entrepreneurs ask that question as they work through the many facets of transforming their dream of business ownership into a reality. The business structures have similarities and differences, as well as advantages and disadvantages, so it’s important to consider all of them when deciding on the right business entity type for your company. So, how do LLCs and Corporations compare? 1. State Registration Both LLCs and Corporations are formed by filing registration forms with the state. The paperwork required, filin ..read more

The Corporate Transparency Act’s Beneficial Ownership Information Reporting Rule went into effect in January 2024, leaving many business owners wondering: Are they required to submit a Beneficial Ownership Information (BOI) Report? What’s the difference between beneficial owners and company applicants, and what information does a reporting company have to share about them? Although certain entities are exempt, most small Corporations, Limited Liability Companies (LLCs), Limited Partnerships (LPs), Limited Liability Partnerships (LLPs), Limited Liability Limited Partnerships (LLLPs), and bus ..read more

If you own a business that’s registered with the state in which you operate, such as a Limited Liability Company, a C Corporation, or a Limited Liability Partnership, it’s likely that at some point you’ll be asked to provide a Certificate of Subsistence. A Certificate of Subsistence, which in some states is known as a Certificate of Good Standing, a Certificate of Existence, or a Certificate of Status, is a document from the state that verifies a business is indeed operating; is properly registered; and is in compliance with federal, state, and local laws. While specific information varies fr ..read more

If the bed-and-breakfast you own and operate runs at full capacity for the months of July and August and the work is too much for you to do on your own, you might consider hiring temporary employees to help. The same goes for a consulting firm that just landed an important six-month assignment for its biggest client, or a building contractor who agreed to take on a large-scale renovation project. Temporary workers account for only about 2% of total nonfarm employment in the United States, according to the Bureau of Labor Statistics, but employers in many industries rely on temporary employees ..read more

One of the main reasons to create an LLC or to incorporate revolves around asset protection. The business structure legally separates the assets of the ownership from the assets of the company. The corporation may be sued (and even go bankrupt) without loss of personal property by the ownership. As your first line of defense, I encourage you to consider the legal structure of your business. If you’re operating as a sole proprietorship (or general partnership), you’re more likely to put your personal belongings in jeopardy than if you formally register your business as a different type of busi ..read more

Tax implications are among the most important factors to think about when deciding on a business entity type. Some business owners are attracted to the simplicity of pass-through taxation, which is how a sole proprietorship, partnership, LLC, and S Corporation are taxed. But for others, the tax benefits of incorporating as a C Corporation offer more financial advantages. A C Corporation is a business entity independent (both legally and from a tax perspective) of its owners (called “shareholders”). As such, the company is responsible for reporting its profits and losses on its own income tax ..read more

Most builders and real estate investors understand the importance of protecting personal assets and optimizing their tax situation. One way to address both concerns is by choosing the right business structure for holding rental properties. Many property developers and investors choose a Limited Liability Company (LLC) for their rental properties because the LLC provides asset protection and tax flexibility. LLCs are separate legal entities from their owners (called “members”). They can have one member (single-member) or more than one member (multi-member). By setting up individual properties ..read more

Choosing a business structure for your company is one of the most crucial first steps to starting a business. Your business entity type has legal, financial, and administrative implications, so it’s important you get started with the best entity for your situation. Your choice of business structure will have an impact on these and other aspects of running your company: Who qualifies to own your company Whether you can—and what you must do to–transfer ownership of your company Taxes your company is subject to Your ability to get credit and funding Your personal liability The number of ongoing ..read more

Starting in 2025, Pennsylvania will retire its decennial report requirement and instead require many business entities to file annual reports. Going from reporting every ten years to every year is a result of 2022 Act 122, which Governor Tom Wolf signed into law. The new reporting rule and revised annual report dates apply to the following types of business entities in Pennsylvania: Domestic Business Corporations – June 30th Foreign Business Corporations – June 30th Domestic Nonprofit Corporations – June 30th Foreign Nonprofit Corporations – June 30th Domestic Limited Liability Companies (LL ..read more