#llc
LLC
LLC formation, taxation, and accounting best practices explained
Corporate Minutes and Resolutions: How to Avoid Piercing the Corporate Veil
Courts pierce the corporate veil when owners can't show documented governance — meeting minutes, written resolutions, and clean separation of business and personal funds — so a folder of dated records plus consistent bookkeeping is the practical defense against personal liability.
Makerspace and Hackerspace Bookkeeping: Membership Dues, Workshop Revenue, and Shared Equipment Costs
Makerspaces should recognize annual membership dues ratably over the term as a deferred-revenue liability rather than all at once, track workshop revenue separately from dues, capitalize equipment above a set threshold, and choose an LLC or 501(c)(3) structure based on whether their funding model relies on grants or dues.
Profits Interests, Explained: How LLCs Can Grant Equity Without Triggering a Tax Bill
A profits interest lets an LLC or partnership grant a service provider real equity with no tax at grant or vesting under Rev. Proc. 93-27 and 2001-43 — provided the distribution hurdle equals fair market value at grant, the interest is held two years, and the recipient accepts K-1 partner status. Here is how the safe harbor works, how the hurdle math is set, and the six mistakes that break the tax-free treatment.
LLC vs. S-Corp vs. C-Corp: How to Choose (and Later Change) Your Business Structure
An LLC pays 15.3% self-employment tax on all profit; an S-Corp election (Form 2553) splits income into salary and distributions, typically saving $7,000+ once net profit clears $40,000–$60,000. Here's how all three structures compare — and how to switch later.
Iowa SF629: The New Expedited Business Filing Tiers, What They Cost, and When to Pay
Iowa Senate File 629, signed June 2, 2026 and effective July 1, 2026, writes four expedited business filing tiers into Iowa Code section 9.15 — one-hour ($200), same-day ($125), two-day ($50), and five-day ($15) surcharges on top of standard fees — covering formations, amendments, mergers, foreign qualifications, and dissolutions for every entity type.
Kansas Just Cut Business Filing Fees for the First Time Since 2008 — Here's What Changed
Kansas's 2026 fee overhaul — the first since 2008 — sets LLC, LLP, and LP formation at the same $90 online fee corporations pay, cuts PEO annual report fees from $1,000 to $250, and lowers biennial report fees, saving Kansas businesses over $3 million a year combined.
Maine's 2% Millionaire Surtax and the New PTET Election: What Business Owners Owe in 2026
Maine's 2% surtax on taxable income above $1 million ($1.5 million joint) took effect January 1, 2026, alongside a new pass-through entity tax election at 7.15% with a 90% refundable owner credit. Here's who owes the surtax, how the PTET election interacts with it, and why the two must be modeled together.
New Jersey Cuts Business Formation Fees: What the July 2026 Reduction Means for LLCs and Corporations
New Jersey reduced business formation fees effective July 1, 2026 — LLC and corporation registration drops from $125 to $100, nonprofit registration from $75 to $50, with annual report, amendment, merger, and dissolution fees cut by about $25 each. Here's how the new rates compare nationally and what new founders should do next.
Community Property Trusts: How Business Owners in Any State Can Get a Full Basis Step-Up
Alaska, Tennessee, Kentucky, Florida, and South Dakota let married couples in any state opt into community property treatment through a trust, so the entire asset — not just half — gets an IRC Section 1014(b)(6) basis step-up at the first spouse's death. What business owners should know about Section 754 elections, the one-year gift trap under Section 1014(e), and the unresolved IRS guidance.
Connecticut's New R&D Tax Credit for LLCs and S Corps: What Public Act 26-68 Means for Small Businesses
Connecticut's Public Act 26-68, signed May 26, 2026, gives pass-through entities — LLCs, S corps, and partnerships with gross income under $70 million — a 6% R&D tax credit for the first time, refundable at 65% (90% for biotech), capped at $1.5 million per business and $25 million statewide, and claimed through a DECD voucher within 90 days of year-end.
Delaware Just Raised Its LLC Annual Tax From $300 to $400 — Here's What Every Out-of-State Entity Owes
Delaware HB 400, signed May 21, 2026, raises the flat annual tax on LLCs, LPs, and GPs from $300 to $400 and the registered-series tax from $75 to $100 — retroactive to January 1, 2026. Here's who owes it, when it's due, and how to budget for it.
FinCEN Removed Beneficial Ownership Reporting for U.S. Companies: What the Corporate Transparency Act Rule Change Means for Your Small Business
FinCEN's March 2025 interim final rule exempted domestic U.S. companies from Corporate Transparency Act beneficial ownership reporting, removing the obligation for more than 99% of previously covered entities while foreign reporting companies must still file.