If your business is structured as a corporation or LLC, you are subject to certain compliance requirements in order to protect your tax benefits and to insure a protective shield between business activities and your personal property. Not complying with the laws and regulations can cost you a lot of money.
Let us educate you on what the compliance requirements are and how to comply with them. You could incur a large increase in taxes or a huge legal liability, if you ignored the filings and documentation required.
Many business owners form an LLC or a corporation with the misunderstanding that their business structure will protect them from lawsuits or creditors. However it is rare that these same owners operate their business in a manner consistent with their chosen entity structure, as required by law. Therefore, they often find out that they have no protection.
The courts consistently rule that if you are not acting like a corporation or LLC, then you are not one. If you do not follow the “Rules”—you are not protected.
The IRS is expanding audits to corporations and LLCs, which have elected to be taxed as a corporation, for not fulfilling corporate compliance requirements. In these cases, the IRS may reclassify a corporation to be taxed as a general partnership, thus subjecting the owners to the higher Self-Employment Tax, and possibly causing them to lose their asset protection shield.
Our Corporate & LLC Compliance Education can provide you with a better knowledge of
- The basics of how corporations & LLCs operate
- The governing structure & responsibilities of the Board
- State of formation differences vs. Operating Agreement issues
- Tax and legal differences between C-corps, S-corps & LLCs (with and without corporate tax structure)
- Exempt Organization corps (if your corporation is a non-profit)
- Determining reasonable compensation for officers
- Written Accountable Reimbursement Expense Plans
- Preserving tax benefits
- Maintaining the corporate veil
- What assets should the corporation own?
- Accounting & recordkeeping system for compliance
- Shareholder Agreement & buy-sell provisions
- Owner/employee benefits
- Corporate Annual Meeting and compliance filings
- What should go into the formal Minutes?
- Common mistakes made when holding Annual Meeting
- How incorporating can reduce your AMT
- How corporations can allow larger owner benefits
- Superior exit strategies and succession planning with a corporation