Guest Post: 3 Key Elements To A Startup Partnership Agreement

If you’re running a small start-up business with a partner, chances are this partner is a good friend, a colleague you trust or maybe even your spouse.

During the early phases of a start-up it is even more so important to put everything in writing. You are laying the foundations to what may hopefully grow into a solid corporation. Many will feel the relationship with the chosen partner is strong enough to withstand any potential disagreement. (more…)

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S-Corporation 101: What you need to know

With the tax season upon us, we’d like to help shed some light on tax issues. Every Friday for the next several weeks we will discuss how the following tax considerations apply to different business entities. (Look for the little piggies!)  The considerations are:

  1. 1. Pass through of gains
  2. 2. Pass through of losses
  3. 3. Transfer of assets to the entity, and
  4. 4. Transfer of assets from the entity

This week we’re going to cover the S-corporation.

What is an S-corp?

For starters, an S-corporation starts just like a normal C-corporation. The letters (S & C) are designations from subchapters of the IRS code. Most corporations are C corporations. An S corporation is a corporation that has made a special election to be taxed in a certain way. Because of this special treatment, there are additional rules and restrictions on top of the standard corporate law requirements. (more…)

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