Generally, a corporation, and not its shareholders, is liable for its own debts. Under Texas law, a court may ignore the corporate form when the corporation is the alter ego of its owners or shareholders. The alter ego principle applies when there is such unity between corporation and individual that the separateness of the corporation Read more about Owner liable for corporate tax debt[…]
My answer to Should I file my startup in Delaware if it’s located in Texas? Answer by Wray Rives CPA CGMA: If you will operate your Texas startup from Texas, you will have to be registered in Texas no matter what. The only reason to register in DE is because you intend to seek outside Read more about Should I file my startup in Delaware if it’s located in Texas?[…]
Would a foreign partner in a US LLC pay tax where he lives or in the US? Answer by Wray Rives CPA CGMA It is impossible to answer without knowing more about the specifics of your operation. The US has a tax treaty with a number of other countries. If the foreign partners are in a Read more about Do foreign partners in an LLC pay taxes in the US[…]
What is the best state to incorporate in for a foreign startup? Answer by Wray Rives: There are so many variables, all I can do is give you some general ideas about foreign nonresident owners of US entities and what states make “tax sense” for the non-resident owners. First I assume you that you want Read more about What is the best state to incorporate in for a foreign startup?[…]
Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey? Answer by Wray Rives: Should you register you startup LLC e-commerce business in Delaware? If you operate the business in New Jersey, you will still have to register the LLC as doing business in New Jersey and pay Read more about Is it worth creating an LLC in Delaware while operating an e-commerce business out of New Jersey? What are the pro’s/cons?[…]
Answer by Wray Rives: I concur with Karl Stevens in fact most S Corporations today are LLC's at the legal entity level. S Corp and LLC are two very different questions. As to the original question about making an 83(b) election, it is very critical that you understand the consequences of making the election for Read more about How important is it to file a Section 83 (b) election for an LLC S-Corp?[…]
Answer by Wray Rives: You will have to file taxes in Delaware, because at a minimum DE franchise tax will be due. Just having a bank account in NY would not be a problem, but if the owner(s) are physically located in NY and working from NY, then the company will have to register and Read more about If a company is incorporated in Delaware, but has a bank account in NY in which state should this company report taxes? Could it cause do…[…]
One important consideration when starting your business is determining the best legal organizational structure. Why? Because it will affect operating efficiency, transferability, control, the way you report income, the taxes you pay and your personal liability. There is no one size fits all “best” structure for a business. You have to weigh a number of Read more about Selecting Your Small Business Legal Structure[…]
It is time to update my summary of online/cloud/SaasS bookkeeping apps. This was originally an answer to a question on Quora about what is the best cloud accounting solution for a small business. The answer is that the best solution is one that the small business can and will actually use. There are a Read more about Update on cloud accounting apps[…]
If you have been involved with a startup company, you very likely have run into grants of restricted stock and the decision if you should make an 83(b) election. Basically an 83(b) election is a choice you make to assert your rights under section 83(b) of the Internal Revenue Code. Section 83 deals with the Read more about Understanding an 83(b) Election[…]