My client, Marylou, has just started a small business. In this case, we formed a corporation for her dry cleaning business. Marylou is the new president of ABC Startup Dry Cleaning, Inc. She barely has enough money to pay rent and buy equipment, but she can’t run a dry cleaning business by herself. Marylou needs… Read More »
Posts Categorized: Startups
The Best Way to Buy a Small Business
Bob, one of my business clients, wants to own a coffee shop. He calls me and tells me he has found one for sale—and in the perfect location. That coffee shop is owned by a corporation. The corporation is really just the owner and his wife, but the corporation is the legal owner of the… Read More »
S-Corp or C-Corp? What's the Difference?
When you first form your corporation, it comes into existence as a C Corporation. If you do nothing more, your corporation will remain a C Corporation. A C Corporation becomes an S Corporation only when special tax treatment is sought by filing Form 2553 with the IRS. http://www.irs.gov/pub/irs-pdf/f2553.pdf Although a small business lawyer can… Read More »
Four Corners of a Contract, Demystified
What is the Four Corners Rule? The “Four Corners Rule” states that if the language is not found within the written words of the contract, then outside evidence will not be considered. This includes any oral agreement you’ve made. How Does this Work? So, for example, you’ve agreed to buy widgets from a manufacturer. Your… Read More »
Long Island Small Businesses and the Onerous MTA Payroll Tax
I confess, I only incorporated my business this past year. For a solo attorney such as myself, there aren’t as many reasons to incorporate as there are for other businesses. I have malpractice insurance that covers most of my liability, and a corporation or LLC formation would offer little in the way of additional protection. … Read More »
Small Businesses Need Minutes of Meetings
Why Does a Small Corporation Need to Keep Minutes? Corporate minutes are a reflection of the decisions of the Board of Directors. Even more importantly, corporate minutes are an indication that formalities of the corporation are being kept. If involved in a lawsuit, one way an attorney will attempt to reach personal assets of the… Read More »
Using an Online LLC Incorporation Service
This past month, I have had numerous Long Island clients calling me and asking me to fix their corporations and LLC’s that they ordered and paid for online. It seems that these online documents come complete with any number of their forms left blank. I have seen two this week where the first page of… Read More »
Obama Calls Small Business The Little Engine that Could
President Obama gave a speech Thursday directed towards small business owners, calling them “the engine of job growth in America.” In his continuing efforts to get the nation behind his health care initiative, Obama addressed not only small business owners and organizations from across the country but also members of the U.S. Chamber of Commerce… Read More »
Overpromising? “Limited” Liability and Small Business
If you are just starting a small business or have a sole proprietorship, you have probably thought about and received advice about either incorporating or forming a limited liability company (LLC). What protections do these business entities actually offer to the small business owner? The Promise You have probably heard that by incorporating or forming… Read More »
Small Businesses and Federal Tax Help
I love recommending government resources. Many of us wonder where our tax dollars go. It helps a bit to realize that there are resources provided by the federal government specifically designed to help the small business owner. The Internal Revenue Service maintains a Small Business and Self-Employed Center section on its website dedicated to providing… Read More »