Form an LLC – American Corporate Enterprises, Inc.

Changes to Tax Code That Make LLCs and S Corps More Attractive

With the Tax Cuts and Jobs Act a new tax deduction for pass-through business income was created (LLC, S Corp, Partnership and Sole Proprietorship income). The deduction allows for a 20% deduction of qualified business income. There are a few limitations, but in general this means that 20% of business net income can be a deduction on the owner’s personal tax return. *

Before the Tax Cut and Jobs Act a C Corporation had a range of tax rates between 15% and 35%. After the Tax Cuts and Jobs Act the corporate rate is now a flat 21%. For most large corporations this is a win with a lower tax bracket, but if you were operating as a C Corporation with net profits less than $50,000 this is an increase of 6%.

For this reason we are seeing:

An increase in the formation of LLCs (Liability protection; lower state fees overall; less paperwork)
An increase in new Corporations electing S Corp status
Existing Corporations making elections from C Corp to S Corp status with the IRS

Sole Proprietorships are not recommended in an asset protection strategy. With a Sole Proprietorship there is no protection for personal or business assets. A Sole Proprietorship has no Charging Order protection or “corporate veil protection”.

Nevada currently is the only state that has a Charging Order provision for closely held corporations.

* PLEASE NOTE: There are a few limitations to the Qualified Business Income deduction such as W-2 wage limitation; Service business limitation and higher income level limitation. Please seek advice from YOUR tax professional for your specific situation/goals.

Some information contributed by Elite Bookkeeping & Tax Services.

Charging Order Protection for Nevada Corporations

Doing Business With States- Vendor and Procurement Resources

Are you interested in doing business with other states? Below are links for vendor and procurement resources for you.

Your Corporation or LLC would need to be registered in those states in order to do business there. We can help you with forming domestic entities as well as filing as foreign entities in every state.

Alabama https://purchasing.alabama.gov/Default.aspx

Alaska https://doa.alaska.gov/dof/iris/vendor.html

Arizona https://procure.az.gov/bso/

Arkansas https://business.usa.gov/external-site?ccontent=https://www.dfa.arkansas.gov/offices/procurement/Pages/vendorInformation.aspx

California https://www.dgs.ca.gov/pd/Home.aspx

Colorado https://www.colorado.gov/pacific/osc/procurement-resources

Connecticut https://das.ct.gov/cr1.aspx?page=8

Delaware https://business.usa.gov/external-site?ccontent=https://mymarketplace.delaware.gov/

Florida https://www.dms.myflorida.com/business_operations/state_purchasing/public_procurement_professional_development

Georgia https://doas.ga.gov/state-purchasing/suppliers

Hawaii https://spo.hawaii.gov/

Idaho https://purchasing.idaho.gov/

Illinois https://www.illinois.gov/cms/business/procurement/Pages/default.aspx

Indiana https://www.in.gov/idoa/2464.htm

Iowa https://das.iowa.gov/procurement/vendors/how-do-business

Kansas https://admin.ks.gov/offices/procurement-and-contracts/

Kentucky https://finance.ky.gov/services/eprocurement/Pages/doingbusiness.aspx

Louisiana https://wwwprd1.doa.louisiana.gov/OSP/LaPAC/pubMain.cfm

Maryland https://emaryland.buyspeed.com/bso/

Massachusetts https://www.mass.gov/anf/budget-taxes-and-procurement/oversight-agencies/osd/

Michigan https://www.michigan.gov/micontractconnect

Minnesota https://www.mn.gov/admin/government/purchasing-contracting/

Mississippi https://www.mscpc.com/bid-opportunities/

Missouri https://oa.mo.gov/purchasing#mogov-tabs-pane-4-tab-1

Montana https://vendorresources.mt.gov/

Nebraska https://das.nebraska.gov/materiel/purchase_bureau/vendor/vendor-info.html

Nevada https://purchasing.state.nv.us/

New Jersey https://www.nj.gov/njbusiness/contracting/

New Mexico https://www.generalservices.state.nm.us/statepurchasing/

New York https://nyspro.ogs.ny.gov/

North Carolina https://www.doa.nc.gov/pandc/Default.aspx

North Dakota https://www.nd.gov/spo/vendor/registry/

Ohio https://business.ohio.gov/state/

Oklahoma https://www.ok.gov/DCS/Central_Purchasing/Vendor_Registration/index.html

Oregon https://www.oregon.gov/DAS/EGS/PS/pages/supplier_info.aspx

Pennsylvania https://www.emarketplace.state.pa.us/

Rhode Island https://www.purchasing.ri.gov/bidinfo/geninfo/geninfo.aspx

South Carolina https://business.usa.gov/external-site?ccontent=https://procurement.sc.gov/PS/vendor/PS-vendor-new.phtm

South Dakota https://boa.sd.gov/divisions/procurement/vendors/

Tennessee https://www.tn.gov/generalservices/topic/vendor-information

Texas https://www.texasbidsystem.com/

Utah https://purchasing.utah.gov/vendorinformation.html

Vermont https://bgs.vermont.gov/purchasing

Virginia https://www.dmbe.virginia.gov/bid.html

Washington https://www.des.wa.gov/services/ContractingPurchasing/Pages/default.aspx

West Virginia https://www.state.wv.us/Admin/Purchase/vrc/default.html

Wisconsin https://doa.wi.gov/Divisions/Enterprise-Operations/State-Bureau-of-Procurement

Wyoming https://ai.wyo.gov/general-services/contracts–purchasing

Documenting Your Business Activities

As stated in previous posts Corporate Record Keeping is essential when it comes to protecting your assets and tax benefits. Anything that is of major business consequence should be documented in your records. You need to show evidence that it was approved by the company.

Below are is a partial list of examples of business activities to document:

Amendments to the Articles
Annual Meetings of Shareholders/ Members
Annual Meetings of Directors/ Managers
Special Meetings of Shareholders, Directors/ Members
Authorization for Voting Proxy
Opening of bank account
Adding or changing bank signatories
Authorization to change or appoint company accountant
Authorization to appoint legal counsel
Authorization for payment of business travel
Changes to Bylaws or Operating Agreement
Changes in Stock/ Membership Certificates to correct errors or omissions
Changes in Officers/ Management (new appointments, resignations, dismissals)
Reimbursement for child care expenses
Independent contractor service (1099s for outside services)
Authorization for credit card
Authorization to establish line of credit for the company
Authorization for Foreign Qualification
Reimbursement for Life Insurance
Medical and Dental Reimbursement Plans
Mergers and acquisitions
Promissory Notes
Retirement Accounts
Purchase of Key-Man Policy
Real Estate leases or purchases
Setting salaries for Officers/ Managers
Authorization to pay for vehicle expenses (purchases, leases, maintenance, insurance, gasoline)
Dissolution of company

We do offer Corporate Record Keeping Assistance. For more information and sample forms, visit https://americancorpenterprises.com/what-we-offer/services/corporate-record-keeping/

Limited Liability Company Classification

If you’re thinking about starting an LLC, here’s a post by our affiliate office regarding how the IRS classifies limited liability companies.

Elite Bookkeeping & Tax Services: Limited Liability Company Classification: A Limited Liability Company (LLC) is a business structure allowed by state statute. Every state has its own regulations so it’s important to…

Find out more about American Corporate Enterprises by visiting our website at https://americancorpenterprises.com.At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us Toll free (888) 274-1130 or (775) 884-9380 today.

At American Corporate Enterprises, Inc., we have the expertise to handle all your incorporation needs! Contact us

Toll free (888) 274-1130 or (775)884-9380 today and visit our website at www.staging-americancorpenterprises-staging.kinsta.cloud.

Form a Corporation or LLC- Starter Package

See our 20th Anniversary Promotions- available until the end of June!

If you’re considering starting a Nevada Corporation or LLC, below is a list of what’s included with our Starter Package (our most popular package).

LIMITED TIME OFFER: As part of our 20th Anniversary Promotion we are also offering FREE Bank Account Assistance ($150 value).

• First Year Registered Agent fee
• Nevada name availability search
• Preparation and filing of Articles
• Filing fee for Articles (75,000 shares at no par value for corps.)
• Certified copy of Articles (required by state for our files)
• EIN Instructions
• Corporate Bylaws or 26-pg. LLC Operating Agreement Draft
• Save and Hold Harmless Indemnity Agreement (for your purchase)
• Customized Organizational Minutes
• Customized Officer/Director or Member/Manager Acceptance Forms
• 20 Security Protected Stock Certificates or LLC Membership Certificates
• Instructions for issuing stock
• Initial List/State License form and filing instructions (state fee not included)
• Hand delivery of Initial List/State License form to state (may also be filed online for faster processing by the state)
• Miscellaneous forms and information
• First year Business Address Service/Mail Forwarding. You may then use our address on your bank account, letterhead, business cards, web site, etc. All First Class mail is forwarded on a daily basis for no additional charge. Shipping fees and special handling fees are separate.
• FREE Corporate Record Keeping CD – ($99 value) Contains fill-in-the-blank forms for your record keeping needs. May be modified for use with LLC.
• Corporate Kit- Handsome 3 ring binders with inside pockets, section dividers, slip cover and name embossment.
• UPS Shipping fee (domestic)

For a limited time we are also offering:

$50 our new Corporation or LLC package for any state (not valid with Starter Package, Basic Incorporation or Platinum Package).

$300 new Annual Executive Suite Services (may be used with our Platinum Package).

For pricing, other package information or to place an order, visit
https://americancorpenterprises.com/order_online.html