What is the Difference Between a Corporation and an LLC?

What is the Difference Between a Corporation and an LLC?

Although corporations and LLCs are similar, they have some critical differences. Choosing the right entity can mean a significant difference in tax treatment, for example. The membership structure is comparable, but there may be some restrictions that apply to corporations that do not apply to LLCs, and vice versa. Learning about the major differences between these two business structures is vital to choosing the right business structure for your company.

What are the fiduciary duties of a DC trustee?

What are the fiduciary duties of a DC trustee?

When you appoint a trustee, you are placing a great deal of confidence in this person to manage the trust assets. A trustee holds a great deal of power because the trustee holds legal title to the property within the trust. It is very important that a trustee understands his fiduciary duties under the terms of the trust and Washington DC trustee laws. A DC trust administration attorney can assist trustees in understanding their fiduciary duties as a trustee.

How to Avoid Conservatorship and Guardianship in Virginia

How to Avoid Conservatorship and Guardianship in Virginia

At some point in many people’s lives, they become unable to watch over their personal or financial care. In these situations, it may become necessary for someone to step in and assume certain responsibilities of care for that person. Some states call them guardians, others conservators. These individuals are charged with ensuring an incapacitated person’s medical, financial and other needs are met. With proper planning with an estate-planning attorney, guardianships can be avoided.

What are the Advantages of a Maryland Trust?

What are the Advantages of a Maryland Trust?

When it comes to estate-planning, the two terms that generally come to mind are wills and trusts. We know we should have one or the other, or perhaps both. For many people, it can be difficult to determine what the best course of action will be to protect their assets. Additionally, because Maryland updated its law on trusts a few years ago, incorporating many provisions from the Uniform Probate Code, it may be necessary for those people who have a Maryland trust to reconsider their options.

What is the difference between a LLP & LP?

Choosing the right business entity is an important phase in business formation. Each type of business entity has certain advantages and disadvantages for the partners. The type of business, the partners’ goals, and state laws factor into your decision whether to form an LLP or an LP. An experienced business formation attorney can help you determine whether an LP or an LLP is best for your needs and goals.

Does My Maryland Business Need a Resident Agent?

The decisions made during the formation and registration of a business can have a substantial and long-term impact on the success of the business, including the ease of operation. A business formation attorney provides advice and guidance during each phase of a business startup, including selecting your business structure, assessing liability, and drafting necessary business documents.

What are the Advantages of a Maryland Trust?

When it comes to estate-planning, the two terms that generally come to mind are wills and trusts. We know we should have one or the other, or perhaps both. For many people, it can be difficult to determine what the best course of action will be to protect their assets. Additionally, because Maryland updated its law on trusts a few years ago, incorporating many provisions from the Uniform Probate Code, it may be necessary for those people who have a trust to reconsider their options. If you are wondering whether you should have a will, a trust, or both, it is best to seek the advice of a competent Maryland trusts attorneyto discuss your specific situation.

How to Avoid Conservatorship and Guardianship in Virginia

At some point in many people’s lives, they become unable to watch over their personal or financial care. In these situations, it may become necessary for someone to step in and assume certain responsibilities of care for that person. Some states call them guardians, others conservators. These individuals are charged with ensuring an incapacitated person’s medical, financial and other needs are met. With proper planning with an estate-planning attorney, guardianships can be avoided.

1099 or W-2 - Which Worker Does the TCJA Favor?

1099 or W-2 - Which Worker Does the TCJA Favor?

If you accumulate a lot of business expenses to earn a living, your filing status can make the difference between getting to deduct those costs on your tax return or not. If you cannot offset your earnings by the costs required to generate that income, you will have to pay higher income taxes. The dust is just beginning to settle on the new Tax Cuts and Jobs Act ("TCJA"), and taxpayers are trying to wrap their heads around how the tax changes will affect their bottom line.

What Estate-Planning Documents Do You Need in Place When Your Child Turns 18?

What Estate-Planning Documents Do You Need in Place When Your Child Turns 18?

Think estate-planning is only for the elderly? Everyone needs help at any stage of the game. In fact, you may think your job is pretty much done when your child turns 18 -- that your role has shifted from director to supporting actor. Your child goes off to college, and you think about how you could repurpose her bedroom in a few years when she is setting up her own place. For 18 years, you have been able to watch over her, call her doctors, talk to her teachers, and do your job as an involved parent. Then there is a problem with her financial aid, and you quickly discover that the university cannot answer your questions or let you help fix the problem. The good news is that there are estate documents that could give you the legal authority to step in when your college-age child needs your help, but the bad news is that you don’t have those documents.

The IRS Placed a Tax Levy on My Bank Account – What Are My Options?

The IRS Placed a Tax Levy on My Bank Account – What Are My Options?

A tax levy is a legal action that allows the IRS to legally take property in order to pay off a tax debt. As a result of IRS litigation and other actions, you could see your wages garnished, assets frozen, or even the seizure of your vehicles and real estate. This is not something that happens overnight though. The IRS must satisfy a number of requirements before can actually issue a levy.

Business Tax Compliance - Is Your Company Compliant with Tax Filings?

Business Tax Compliance - Is Your Company Compliant with Tax Filings?

For many companies, especially smaller businesses, the tax code is a large source of unnecessary frustration. While the individual tax code is complex enough, the reporting and filing burden on companies is even higher. In addition to the federal requirements, each state has its own tax code which includes its own tax forms, payment thresholds, filing deadlines, filing schedules, and payment thresholds, among other unique requirements and obligations. Business tax compliance can be a true nightmare.

Are Non-Compete Clauses Legal in Business Contracts?

Are Non-Compete Clauses Legal in Business Contracts?

Businesses use non-compete clauses in order to protect themselves from having employees leave or quit to work at a rival company. The rising value of trade secrets has prompted employers to issue more non-compete contracts. Estimates are that about 20% of the American workforce is subject to a non-compete contract and that 37% have signed one at some point in their career. If you have been approached to sign a non-compete agreement or are contemplating making non-compete clauses a part of your employment practice, you may want to talk with an experienced business transaction lawyer before you move forward.

Top 4 Tax Mistakes Your Company is Probably Making

Top 4 Tax Mistakes Your Company is Probably Making

The signing of the Tax Cuts and Jobs Act the end of the year ushered in several changes to the US Tax Code. Even though tax day comes at around the same time each year, many companies still scramble to get everything in at the deadline since going through receipts, bank statements, and other documents can be a time-consuming and tedious affair. Proactive tax compliance can often make tax preparation a less-stressful affair. In addition, avoiding these four tax mistakes can save you time, money, and stress over the next few years.

Do I Have to Issue a 1099 to Independent Contractors I Paid Via Third-Party Vendor Services Like PayPal, Venmo or Wave?

Do I Have to Issue a 1099 to Independent Contractors I Paid Via Third-Party Vendor Services Like PayPal, Venmo or Wave?

For a business, regardless of the business entity or the size of the business, taxation is anarea in which even a small mistake can become very costly. Failure to properly account for payments to independent contractors can lead to steep penalties. However, penalties, interest, and additional taxes are not the only consequences a business owner should worry about when making a tax-related mistake. Business taxation mistakes can lead to expensive and time-consuming tax audits.

5 Things You Didn’t Know About Virginia Guardianships

5 Things You Didn’t Know About Virginia Guardianships

In the Commonwealth of Virginia, obtaining a guardianship is a complex undertaking and one you should not attempt without a Virginia estate planning attorney to guide you through the process. Navigating the intricate waters of Virginia guardianships requires the knowledge and skill of an estate planning attorney - and here’s why: what you don’t know can hurt you.

Sole Proprietorship or LLC – What is the Best Business Structure for Tax Purposes?

Sole Proprietorship or LLC – What is the Best Business Structure for Tax Purposes?

For anyone looking to start a business, one of the first steps involves choosing the business entity form. Popular options include sole proprietorships, limited liability companies (LLC), and corporations. Each entity type has different benefits and drawbacks, and there is no one “correct” choice. The best option is dependent on the business owner’s plans and appetite for risk and liability.

Top Five Things to Watch Out For in a Business Contract

Top Five Things to Watch Out For in a Business Contract

By signing a contract, a business creates a legally enforceable set of rights and obligations. Therefore, when a business chooses to enter into a contract, it is imperative that it fully understands the terms of the agreement and their consequences. Usually draped in confusing and complex legal terminology, any business contract should be reviewed by a competent and knowledgeable business transactions attorney. There are, however, a few parts that anyone entering into a business contract should look out for.

Why Do I Need an Exit Strategy for My Business?

For most, the basic purpose of owning and operating a business is to make a profit. Not only is selling a business an opportunity to maximize your profits, it can sometimes be the most the most profitable business decision. Whether you are planning on selling your business within its first few years, first few decades, or never at all – it is always a good idea to have a comprehensive exit strategy, so the taxpaying business can plan for any situation that may arise down the road.