In most states you can organize an entity with a commencement date in the future (typically not more than 90 days ahead). This is most often referred to as using a “delayed effective date“.
As we near the end of 2020 the topic of effective dates is a discussion that comes to mind in relation to the filing of new Corporations and Limited Liability Companies. Your client may have a new business venture and is looking to form a business entity for it. Your first inclination may be to deter them from filing this close to the end of the year in order to avoid 2020 taxes, however in many States you can file now, setting forth a delayed effective date. Continue reading “EFFECTIVE DATES FOR NEW CORPORATION/LLC FILINGS”
When filing an entity – either a business or not-for-profit corporation or a limited liability company – the first thought is often, “where should I file?” The most obvious answer is, “where the entity is located”. While this is a valid answer, it may just be a starting place.Continue reading “OUT OF STATE QUALIFICATIONS”
After an entity (either a business corporation, limited liability company or non-profit corporation) is formed, there is often a need to obtain a document which certifies that the entity is: a) still in existence; b) is up to date on its annual reports and franchise taxes; c) up to date on all of its statutory and administrative requirements.
As we approach the end of year many Corporations and Limited Liability Companies find themselves needing to dissolve. Here’s what to expect when dissolving a corporation or a Limited Liability Company.
For corporations many states require that you obtain consent from their governing tax authority before they will accept the filing of a dissolution. For instance, New York and New Jersey have a stringent tax clearance process you must go through before you can dissolve a corporation. In NY, before you can file for dissolution with the Dept. of State you must first obtain consent from the NY Department of Taxation and Finance. Before the New York Department of Taxation and Finance will grant that consent, a corporation must be current with their franchise tax return filings, payment of taxes and a “final franchise tax return” must be filed (and marked such) along with payment of any taxes due per that return. Continue reading “What you should know about Corporate and LLC Dissolutions”
Every business entity filed on a state level with the Secretaries of State of each state is required to file an “annual report” in order to remain active and in good standing. Failure to file such an annual report may result in penalties or revocation of the corporate or business charter. While the time of filing of a company’s annual report may vary with the state in which it is filed, it is a requirement to remain in business.Continue reading “What is an “annual report”?”
Companies which own or lease real estate, employ people, conduct business and/or generate income in a state are considered to be “doing business” in that state. A small business that is “doing business” in only one state should, in most cases, organize in that state. If, however, you are contemplating doing business in more than one state, the decision about where to organize your business gains importance. Continue reading “In Which State Should You Organize Your Business?”
We strongly recommend that customers file the LLC or corporation—or at least reserve the name with the state filing office—before ordering the kit. As with the name on a passport or birth certificate, the exact LLC or corporate name matters. It must be exactly the same on all related legal documents. Continue reading “When Should I Order My LLC or Corporate Kit?”
Forming an LLC (limited liability company) is an important milestone in starting your business. Here we provide a general overview of the steps that must be taken to fulfill the legal requirements for filing an LLC, which vary from state to state. Continue reading “How to Form an LLC”