Last week we talked about how to keep your Corporation in good standing. This week we focus on the LLC. While one benefit of an LLC is less formality, there are still some actions required to protect the owner’s limited liability. 1. You should have prepared and sent W-2s to employees and 1099s to contractors or vendors by January 31st. 2. The LLC must file annual reports with the NC Secretary of State, at the same time it files its company tax return (usually April 15th).
A corporation is a separate legal entity from its owners that keeps the owners’ other assets separate from the corporation – if the corporation is properly run. What does it mean to properly run a corporation? 1. You should have prepared and sent W-2s to employees and 1099s to contractors or vendors by January 31. 2. The Corporation must file annual reports with the NC Secretary of State, at the same time it files its corporate tax return (usually March 15). Many corporate
Companies must not only be properly formed, but properly capitalized and properly run to maintain limited liability. Most companies I work with are properly capitalized, even if they are bootstrapped. The owners have figured out what start-up capital is needed, and have provided appropriate funds and at an appropriate scale. The classic law school example of a company that is not properly capitalized is a taxi company in New York City, where a cab ran over a pedestrian. The c