Form an LLC

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

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.

https://americancorpenterprises.com/charging-order-protection-for-nevada-corporations/

 

 

 

Doing Business With States- Vendor and Procurement Resources

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.americancorpenterprises.com.

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

Other recommended reading:

What is a Registered Agent?
https://americancorpenterprises.blogspot.com/2012/02/what-is-registered-agent.html

After You Incorporate
https://americancorpenterprises.blogspot.com/2013/02/after-you-incorporate.html

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.americancorpenterprises.com.