FAQ

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California

Filing Dates for California Form FTB 3522

Every LLC that is doing business in California or that has articles of organization accepted or a certificate of registration issued by the SOS is subject to the $800 annual tax. The tax must be paid for each taxable year until a certificate of cancellation of registration or of articles of organization is filed with the SOS.

The initial LLC tax is due and payable by the 15th day of the 4th month after the formation of the LLC.

e.g. A California taxpayer, organizes as an LLC in Delaware on June 1, 2014. This LLC registers with the SOS on August 14, 2014, and begins doing business in California on August 15, 2014. Because the LLC was formed on June 1, 2017, the annual LLC tax is due by September 15, 2014

Subsequent annual payments are required each year before April 15th.

The form is updated every year. You should search for the current year 3522 form on the www.ftb.ca.gov web site.

Reseller Permit

The California Board of Equalization administers seller’s permits. Please search for their site or use this link.

Statement of Information

The California Secretary of State requires a form LLC-12 to be completed and submitted within 90 days of the formation of a Limited Liability Company (LLC). The form can be currently found at this link http://bpd.cdn.sos.ca.gov/llc/forms/llc-12.pdf.

If the form has been moved or if the link is broken, please search for “California Secretary of State LLC-12”

Financial

Accounting

We do not offer tax services and recommend our business partner Warren Taryle with Taryle Accounting, CPA PLLC. His office can be reached at 480-948-9510 or by email at info@tacpas.com.

Are Startup Costs different from loans or capital contributions

Yes. Your accountant can advise you on the benefits and drawbacks of each in your particular situation.

Business Licenses

Requirements for licences appear to vary by City / County / State. Speak to a local accountant regarding the type of business activity and the need for a local business license.

Capital Contributions

Capital Contributions are provided by the shareholder (corporation) or member (LLC) – you – and are typically the minimum required to open the company bank account.

Since your capital contribution is not repaid until after your shut down the company, many people merely fund the business with the minimum required to open an account and then claim the start up costs as business expenses or as a loan to the company depending upon the recommendation of their accountant.

Speak to your accountant about the minimum required since the capital contribution is not treated as a loan and is not repaid until you sell or close the company.

Investing with your IRA

Self-directed IRA investing requires you to work closely with your custodian to ensure that you do not carry out a “prohibited” transaction. Review this page www.yourentitysolution.com/ira.

New Jersey S Election

New Jersey requires form http://www.state.nj.us/treasury/revenue/sub-s.pdf or CBT2553 to designate the Small Business tax election for either an LLC or a Corporation.

Shares – why do you have them?

For Corporations, shares designate ownership and the number issued to each individual gives the % ownership. Some shares can be left in treasury un-issued; but if not issued in some states like DE it may affect the annual fee. You should talk to your CPA about the effect in the state of formation.

For LLCs, units designate ownership and the number issued to each individual gives the % ownership. All units should be issued.

SIC and NAICS codes

Some states require an industry standard number to be assigned to your company after it is established. The codes do not match business types exactly and you have to make a judgement as the category in which your business should be “tagged”.

The official list is maintained here.

For example, searching for Rental indicates that the code would be 531110 and other Activities related to Real Estate is 5313. Contact your state office if the category is not clearly defined for your specific business activity.

Statement of Information

The California Secretary of State requires a form LLC-12 to be completed and submitted within 90 days of the formation of a Limited Liability Company (LLC). The form can be currently found at this link http://bpd.cdn.sos.ca.gov/llc/forms/llc-12.pdf.

If the form has been moved or if the link is broken, please search for “California Secretary of State LLC-12”

sub Chapter S

The “S” tax election can be applied to either a Corporation or an LLC with identical benefits and filing requirements.

The main benefits to you as a small business owner includes a reduction in the amount of Social Security / Medicare taxes that you would have to pay on company profits and the ability to claim additional deductions for medical re-reimbursement

These 5% – 10% savings in taxes can become significant once your company generates $40,000 – $50,000 per year of profit after business expenses.

Since the “S” election is primarily used to reduce taxes on “earned” income, it is important to understand how any reduction could occur.

Consider this example of wholesaling / flipping.

Total profits after expenses are $10,000. In addition to normal state and federal income taxes self-employment taxes of 15.3% will be collected. Self-employment and Employment and Payroll taxes all refer to the same pair of taxes – Social Security and MediCare taxes.

Normally the employment taxes would amount to $1,530.

If the company has an “S” election, then the employment taxes may be reduced by half to approximately $750 – saving you the same amount in taxes.

In order to “convince” the IRS to provide this tax savings, the company must provide some additional IRS paperwork – quarterly estimated tax payments, payroll / paycheck reporting and an annual company tax return. Since you will probably need to hire accounting and payroll services to provide the needed paperwork, you will have increased costs as well as additional paperwork.

So the calculation is fairly straightforward.

If your services cost more than your tax savings, an “S” election is probably not a good idea until your profits increase.

You can always file the form 2553 for the “S” election next year. The IRS accepts applications until March 15th of any year.

General

Annual Meetings

While the time / date of the annual meeting can vary form year-to-year you should follow the time frame as shown in Section 7 of your Operating Agreement.

Follow this link for more information http://www.ebiz-learningmembers.com/holding-your-annual-meeting

Business Licenses

Requirements for licences appear to vary by City / County / State. Speak to a local accountant regarding the type of business activity and the need for a local business license.

Do you need a DBA?

Doing Business As or DBA is also known as a fictitious business name in some states. Most commonly used by individuals presenting themselves as a business. Think of “George” operating a mobile car wash – with the business name “Sparkle Clean Wash”. This helps with marketing and helps his clients identify him and his service.

Once you set up a company (LLC or Corporation), the company name replaces the need for a DBA. “Sparkle Clean Wash, LLC” is the business name and George is now separate from the company.

If George also had a business recycling old electronics and he wanted to use the Sparkle Clean Wash, LLC, he could register a DBA for Sparkle Clean Wash, LLC doing business as Green Planet Recycling and the LLC would have a DBA, not George.

Filing Dates for California Form FTB 3522

Every LLC that is doing business in California or that has articles of organization accepted or a certificate of registration issued by the SOS is subject to the $800 annual tax. The tax must be paid for each taxable year until a certificate of cancellation of registration or of articles of organization is filed with the SOS.

The initial LLC tax is due and payable by the 15th day of the 4th month after the formation of the LLC.

e.g. A California taxpayer, organizes as an LLC in Delaware on June 1, 2014. This LLC registers with the SOS on August 14, 2014, and begins doing business in California on August 15, 2014. Because the LLC was formed on June 1, 2017, the annual LLC tax is due by September 15, 2014

Subsequent annual payments are required each year before April 15th.

The form is updated every year. You should search for the current year 3522 form on the www.ftb.ca.gov web site.

Investing with your IRA

Self-directed IRA investing requires you to work closely with your custodian to ensure that you do not carry out a “prohibited” transaction. Review this page www.yourentitysolution.com/ira.

IRA Investment Issues

Accessing your retirement funds can be a great way to grow your retirement nest egg. Alternative investment strategies can increase your plan substantially. If you are not comfortable / knowledgeable with a specific investment or strategy, you would be wise to learn the ins and outs using some other source of funds.

Retirement funds are difficult to replenish if your investment doesn’t pay off the way you hope.

If you are not familiar with the IRS restrictions on “self-dealing”, “disqualified parties”, “UBIT”, etc. make sure that you are working with a custodian who can help guide you through these and many more hazards.

Remember, if the IRS finds something suspicious when they review your IRA transactions, they can force a premature distribution of your retirement funds along with penalties and taxes!

To learn more, please visit our IRA page.

Shares – why do you have them?

For Corporations, shares designate ownership and the number issued to each individual gives the % ownership. Some shares can be left in treasury un-issued; but if not issued in some states like DE it may affect the annual fee. You should talk to your CPA about the effect in the state of formation.

For LLCs, units designate ownership and the number issued to each individual gives the % ownership. All units should be issued.

SIC and NAICS codes

Some states require an industry standard number to be assigned to your company after it is established. The codes do not match business types exactly and you have to make a judgement as the category in which your business should be “tagged”.

The official list is maintained here.

For example, searching for Rental indicates that the code would be 531110 and other Activities related to Real Estate is 5313. Contact your state office if the category is not clearly defined for your specific business activity.

IRA

IRA Investment Issues

Accessing your retirement funds can be a great way to grow your retirement nest egg. Alternative investment strategies can increase your plan substantially. If you are not comfortable / knowledgeable with a specific investment or strategy, you would be wise to learn the ins and outs using some other source of funds.

Retirement funds are difficult to replenish if your investment doesn’t pay off the way you hope.

If you are not familiar with the IRS restrictions on “self-dealing”, “disqualified parties”, “UBIT”, etc. make sure that you are working with a custodian who can help guide you through these and many more hazards.

Remember, if the IRS finds something suspicious when they review your IRA transactions, they can force a premature distribution of your retirement funds along with penalties and taxes!

To learn more, please visit our IRA page.

Meetings

Annual Meetings

While the time / date of the annual meeting can vary form year-to-year you should follow the time frame as shown in Section 7 of your Operating Agreement.

Follow this link for more information http://www.ebiz-learningmembers.com/holding-your-annual-meeting

Meetings for LLCs

Aside from the annual meeting, there is no required minimum (or maximum) number of meetings that you can hold. Some people hold formal meetings once per month and have the company pay for any expenses – meals etc. Your accountant can show you how to expense / deduct these costs from taxable income.

The most important consideration is maintaining a record of business related decisions to be able to demonstrate that you are operating a “real” business to be able to justify tax deductions and to allow state law to provide legal protections.

Membership

Removing an LLC member

Document the decision to remove a member as follows. You do not have “buy-out” the member unless specified in the operating agreement.

WHEREAS, John Masters has resigned as Manager and Secretary of the Company; and
WHEREAS, John Masters desires to withdraw as a Member of the Company; and
WHEREAS, John Masters has delivered a letter to the Members giving up all rights to the assets and future earnings of the Company;
IT IS THEREFOR
RESOLVED, that John Masters resignation is accepted.
RESOLVED FURTHER, that the Company agrees to purchase John Masters’ twenty percent (20%) interest in the Company for a consideration of $2,500.
RESOLVED FURTHER, that the Treasurer is directed to issue a check in the full amount of $2,500 to John Masters upon receipt of his ownership certificate.
RESOLVED FURTHER, that Mary Jones is hereby appointed as Secretary of the Company until her successor is voted in at the next annual meeting and qualifies.

Minute Book

Blank Templates

You can modify the the documents in your minute book, or use the attachments found on the “Completing your Minute Book” page or purchase the Meetings and Minutes Workbook and Templates found at http://www.ebiz-learningmembers.com/workbook-discounts. Don’t forget the 50% off code shown on that page.

Meetings for LLCs

Aside from the annual meeting, there is no required minimum (or maximum) number of meetings that you can hold. Some people hold formal meetings once per month and have the company pay for any expenses – meals etc. Your accountant can show you how to expense / deduct these costs from taxable income.

The most important consideration is maintaining a record of business related decisions to be able to demonstrate that you are operating a “real” business to be able to justify tax deductions and to allow state law to provide legal protections.

Minutes and Resolutions

There are some formalities Documenting business decisions have some formalities and you can learn more about them by selecting the appropriate module from the drop down menu above.

Compliance generally involves paying the annual state fees; business licenses (if required by the state); using a bank account opened in the name of the LLC with the LLC EIN; documenting business legal and financial decisions in the meetings of minutes or as written consent of action without meetings.

Removing an LLC member

Document the decision to remove a member as follows. You do not have “buy-out” the member unless specified in the operating agreement.

WHEREAS, John Masters has resigned as Manager and Secretary of the Company; and
WHEREAS, John Masters desires to withdraw as a Member of the Company; and
WHEREAS, John Masters has delivered a letter to the Members giving up all rights to the assets and future earnings of the Company;
IT IS THEREFOR
RESOLVED, that John Masters resignation is accepted.
RESOLVED FURTHER, that the Company agrees to purchase John Masters’ twenty percent (20%) interest in the Company for a consideration of $2,500.
RESOLVED FURTHER, that the Treasurer is directed to issue a check in the full amount of $2,500 to John Masters upon receipt of his ownership certificate.
RESOLVED FURTHER, that Mary Jones is hereby appointed as Secretary of the Company until her successor is voted in at the next annual meeting and qualifies.

Understanding Schedule A

Enter your name and Social Security Number as well as the amount of your capital contribution. If you do not have a separate business address, use your home address.
If you are the sole member of the LLC, you have 100% interest. If there are more than one owner, each owner has their name and information listed.

If another company is an owner of this company, then “Name of Principal if Entity” would be the name of that company. Otherwise it is left blank.

Taxation

Business Licenses

Requirements for licences appear to vary by City / County / State. Speak to a local accountant regarding the type of business activity and the need for a local business license.

Completing the 2553

This form is used to change the tax election of an LLC / Corporation to Small Business taxation. You will need both your SSN as well as the EIN of the company. This form is normally completed after your initial meeting and upon the advice of your accountant.

Review, print, sign and date the form at the bottom of the page.

Each person listed in column J must sign and date next to their name in column K.

List the Social Security Number in column M of the person listed in column J, if it is not already listed.

In column L enter the date you issued your ownership certificates (certificates are found in your entity book referred to above) and the percentage each of you holds. (If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin) you must list your spouse. However, if they do not have any ownership in the company, just put 0%)

Take a copy of the form for your files (keep original for your files if faxing).

Mail or fax the original form to the address/fax number provided below. Make sure you get a receipt confirmation to prove you sent in the form.

Please leave the 3rd Page of Form 2553 blank.

You will receive a confirmation of your change of tax status after a few weeks. If you do not receive a confirmation of change of tax status to S Corporation within 2 months of mailing or faxing the form 2553, please contact the IRS at 1-800-829-4933.

New Jersey S Election

New Jersey requires form http://www.state.nj.us/treasury/revenue/sub-s.pdf or CBT2553 to designate the Small Business tax election for either an LLC or a Corporation.

Reseller Permit

The California Board of Equalization administers seller’s permits. Please search for their site or use this link.

sub Chapter S

The “S” tax election can be applied to either a Corporation or an LLC with identical benefits and filing requirements.

The main benefits to you as a small business owner includes a reduction in the amount of Social Security / Medicare taxes that you would have to pay on company profits and the ability to claim additional deductions for medical re-reimbursement

These 5% – 10% savings in taxes can become significant once your company generates $40,000 – $50,000 per year of profit after business expenses.

Since the “S” election is primarily used to reduce taxes on “earned” income, it is important to understand how any reduction could occur.

Consider this example of wholesaling / flipping.

Total profits after expenses are $10,000. In addition to normal state and federal income taxes self-employment taxes of 15.3% will be collected. Self-employment and Employment and Payroll taxes all refer to the same pair of taxes – Social Security and MediCare taxes.

Normally the employment taxes would amount to $1,530.

If the company has an “S” election, then the employment taxes may be reduced by half to approximately $750 – saving you the same amount in taxes.

In order to “convince” the IRS to provide this tax savings, the company must provide some additional IRS paperwork – quarterly estimated tax payments, payroll / paycheck reporting and an annual company tax return. Since you will probably need to hire accounting and payroll services to provide the needed paperwork, you will have increased costs as well as additional paperwork.

So the calculation is fairly straightforward.

If your services cost more than your tax savings, an “S” election is probably not a good idea until your profits increase.

You can always file the form 2553 for the “S” election next year. The IRS accepts applications until March 15th of any year.

117 thoughts on “FAQ”

  1. I have a Delaware Series LLC and live in California. I am being asked for Reseller Permit and need to understand do I need a State of California Reseller Permit? Do I need to register my LLC in my home state of California to obtain a sales tax permit?

  2. We are not involved with eCommerce internet online business coaching and provide this information as a starting point for your conversations with your coach and financial professional.

    We have spoken with the tax departments of many states, and they do not require your LLC to have a sales tax permit if you do not live in the same state as your LLC. You will probably need a sales tax permit in your state. If your drop-ship supplier does not understand this, you may still have to get two permits – one for the LLC state and one for your home state. Ask your supplier if your home state permit is sufficient.

    The California Franchise Tax Board (FTB) requires an LLC to be registered in California if the business has one or more managers who are California residents or if the business plans to generate revenues in California. Obtaining a sales tax license / permit will also require a registration in California. Opening a bank account with a California bank branch may also require a registration in California.

    We have posted additional information here and in the FAQ section.

  3. I am currently starting into a new project that I want to keep separate from my other businesses, should i get a separate EIN even though I will still be the single manager and owner of this cell? I don’t necessarily have to get another EIN but I have to make sure it is kept separate, so if I need to do this what is the process I need to take?

    Thank you,
    Caity Hunt

  4. Hello, I would appreciate some direction on the following:
    Information:
    * I have my minute books for my Management LLC and my Trading LLC.
    * The Management LLC owner is my Family Trust 100%. I plan on setting up bank account under this LLC
    * The Trading LLC owners are 90% my Family Trust and 10% my Management LLC
    * The Trustees of my Family Trust are myself and my wife.

    I’m getting ready to setup my Trading Brokerage Account.
    I want to make sure I am doing this correctly. So here is the information being asked.
    and my response.

    Corporation – Yes
    Name: Trading LLC Name
    Tax ID. Use # from IRS for Trading LLC
    Names of Officers and Social Security Numbers.
    Do I list my self and my wife because the Trading LLC is listed as a Family Trust?
    Do I reference the Management LLC and it’s Tax ID Number?

    Any help would be appreciated.

    Raymond Farrel Farnes
    rffarnes@yahoo.com

  5. The links should take you directly to the video. If you are having difficulty, then there are some things that you can try. 1) Use Internet Explorer 8 or higher / FireFox 7 or higher. Do not use Safari. 2) make sure that you have the Flash plugin installed in your browser. 3) Understand that the videos are large files and may take some time to download, especially if you are using DSL or dial-up. If you are still having difficulties, please contact our office on Monday.

    Regards,
    Gary Bauer

  6. Hi Mary,

    On the home page you’ll find the Monday Night Q&A information along with a link for the archive of previously recorded calls. The call last night was completed around 6 after all of the questions had been answered. We will take a break for the holidays and our next call will be Monday January 9th. Have a great Christmas.

    Sincerely, Gary

  7. I am not understanding the Dating in the Minute Book. When I put my Minute Book together is this considered my first meeting and should this be the date I use on the papers that I fill out that needs to be dated and is this the same date I write on the Certificates. Question 2: If my bank only requires $100.00 to open up Business Checking Account, would this be considered as my Capital Contribution or is this amount I have already paid for out of pocket,(contract agreements such as the one that I have with OnLine Profit Masters, etc.? Question 3: Since I am claiming 100% Membership Percentage Interest does this mean I have 100 Units? Question 4: Schedule C would I write in 51% or 100% since I am the only member?

  8. Hello Tammy,

    The date of your Initial meeting is whenever you sign the paperwork and elect yourself to be president, secretary, treasurer, etc. that would be the date you use for your meetings and certificates.

    You would not normally use your out-of-pocket expenses as a capital contribution. Many people do use the initial deposit when opening a company bank account as their capital contribution. Your accountant should be able to provide specific guidance.

    An LLC can have as many or as few units as you decide. If you use 100, the 100%=100 units, so this is convenient. If you choose 6,000 units, then 100%=6,000 units.

    Normally a single member company can leave Schedules B and C blank.

    Best Regards,
    Gary

  9. Would all of the different services I have gone through to get my company started be considered a loan to my company from me? If they are should I then create a promissory note for a loan to the company? If so, should these be listed as different promissory notes since they are different services and amounts?

  10. If my husband and I are listed on the first meeting minutes, what title to we give ourselves and who do we make operating manager, secretary, and treasurer? All of our mail comes to our home but would we ever us our virtual office address on our legal documents? How would we come up with our number of units? Since we invested our money in our business, would we just split the units evenly? Thank you for your help!

  11. Hello Gregory,

    Most banks will open a business account with a copy of the EIN ASSIGNED, FILED ARTICLES, FILING Acknowledgement and FILING Certificate documents attached to the “Banking Package” email. Some banks also want a copy of Operating Agreement which is attached to the “Your Minute Book” email.

    Regards,
    Gary

  12. Hello YES,

    I’m filling out my LLC paperwork and was wondering how I figure out exactly what my capital contribution is, given my situation. My expenses have been the money I put down to join Online Profit Masters, the loan payments I am now making for the e-commerce coaching program, monthly web hosting fee, the loan payments I am now making for YES services, and office supplies for printing information during these processes and other incidentals. I believe the minute book tutorial said something about calculating how much money it would take to start up the business until it began experiencing income. Does this figure have to be exact to be able to fill in the capital contribution blank on Schedule A? Do I have to have already made this contribution in order to write down a total? The reason I ask is because I’m sure there is going to be more money invested than I already have to this date before the business realizes an income. I do not have the entire estimated capital contribution on hand and am paying as I go. Do I just claim loan payments already made, or do I claim the total that I will pay when I have paid off the loans; these figures may change depending on if I am able to pay the loans early or not.

    I am also wondering how I come up with the total number of units so I can fill that in on my ownership certificate. From the tutorial, I got that I can just make up this number, but I want to make a number that makes sense. Generally, is one unit equal to one dollar? The total number of units would then equal the dollar amount in the capital contribution?

    Then I was wondering, what if someone in the future invested in my company? This additional dollar amount would change the number of total units if I was using dollar amount invested into the company as my guide to figuring out total number of units. This concept is confusing me about now.

    I have also submitted a question via your Q&A section regarding the need to obtain a Certificate in Good Standing for the bank for opening my business account. I hope you saw that one, too.

    Thank you so much for your answers. By the way, I thought your tutorials were very well done and clear except for the above questions.

  13. Dear YES,

    I would like every business transaction to be covered under my LLC. If I am doing different things like eBay, sales on classified ads and Craigs List, product or service sales on multiple web sites, how do I do this? Do I need to apply for a DBA for each thing? Example: My name on eBay is “tesales2012”. Do I need to register for a DBA for “tesales2012”? If I launch a website called “loveyourpets.com”, do I register a DBA for “loveyourpets.com”? If I am selling item on Craigs List and classified ads, do I need to come with yet another business name for this catagory of sales and register it as a DBA, too?

    Thank you so very much for your patient answers.

    Debra Guyette

  14. Hi Gary
    I just sent you (I think) a list of my questions. Is there any way you can let me know if you did not get my questions? Thanks Ruth Jenkins

  15. Hi Gary,
    I am going to send you a few questions this way. I have a Mac and am not sure you got my questions earlier.
    1. I think I need the tax form 2553. However, it says you need to file between Jan 7 and March 21 for this. My LLC did not start till June 20 should I wait till this Jan to fill that out?
    2. Under Certificates since I am the owner and only employee do I need to put myself on certificate #0 or #1 and use the seal for it. Does it matter where the seal is placed?
    3. I don’t have my business bank account or credit card yet can I just fill that in later on the LLC Data Sheet and first Minutes?
    4. Under State Of Ca LLC Articles of Organization was the 80.00$ fee already paid, I’m pretty sure it was. Let me know.
    5. Do I need a separate State tax number (Ca)
    6. Under Agreement Schedule A Do I need to add up all my expenses so far and put that as my capital Contribution since I am the owner and only employee?
    Thanks Gary I am sure I will have more ? Sorry this is new to me. I also cannot make the phone meetings on Mon cause I work late.
    Thanks for your time Ruth Jenkins

  16. “My Profile” tab and scroll down to the bottom of the page. You will need to start your session over again.

    Regards,
    Gary

  17. where can I find information regarding out of state bank accounts We live in Canada and so we need information what canadian banks will allow us to open an American bank account

  18. We have provided some information in the home page section “Banking … for Canadian residents” marked with a Canadian flag.

  19. Hello, I am creating a Revocable Living Trust and I want it to be the sole owner of my 2 new LLCs you just set up for me. I just received my minute books and was watching the instructional video and you mentioned having your Living Trust own the entire company. How do I go about making that change?? I have not filled out the minute books yet. Do I go ahead and fill them out first and then make the change? OR do I wait and fill it out after the change? How do I make the change?? I own a management LLC and a Trading company LLC in Florida. I would appreciate any information you might have on the subject. thank you for your time.
    Regards,
    Mary Lee Hannon
    Genesis Trader, LLC
    Trinity Management, LLC

  20. Hello Mary Lee,

    It is simpler to make the change while filling out the Minute Book during your initial meeting. Although you will be the sole manager (president, secretary, treasurer) of the management company your trust will be shown as the sole member (owner). You will represent the trust as a trustee where member’s signatures are required. The trust will nominate and elect you to the various management positions and then you can sign as a manager (i.e. Mary Lee Hannon, President, Trinity Management, LLC). A Certificate would would be issued to the Trust representing 100% (however many units that would be) ownership.

    For Genesis Trader, LLC it is a little more complex, since there are two members – your trust and Trinity Management, LLC, so certificates would be issued to both members (owners). Trinity Management, LLC would be elected to be the sole manager (president, secretary, treasurer). When signing as a manager, you are representing Trinity Management, LLC, so you signature block might read – Mary Lee Hannon, President, Trinity Management, LLC, Manager of Genesis Trading, LLC.

    You should also spend some time with your estate planning attorney that set up your trust to find out if there are changes needed to the trust in order for it to act as an owner and manager of companies.

    Regards,
    Gary Bauer
    Your Entity Solution, LLC

  21. Hi I live in Canada and and have a question in regard to how to pay our supplier.We have our PayPal account set up at present,linked to our
    Canadian bank account as well as our credit card that we have in Canada.As soon as we have our American Bank account set up,we will change
    our PayPal account with the American Bank.But the question that I have is:Since our credit card was signed up in Canada,does this mean that we
    have to get a separate credit card from the US or as can we use our present credit card(that we will only use for our new E-Commerce business)
    Thanks so much. Grace and Lawrence

  22. We need to know how we can dissolve this attempt at trying to learn something that we cannot do.We have spent countless hours trying to make this business work but we have to give up.Our health is being affected and if we don’t do something now,we are afraid of what the outcome will be.We are in our 60s and this was suppose to help us to be able to retire from the physical work that our business requires of us, but what has happened is that now we will have to work harder than before to try to repay all the expense that we have now because of this attempt. We are trying to get our banker to help us so that we don’t lose our home,but if that we can’t get that funding we will have no choice but to declare bankruptcy.This is to say the least so very sad, that we now have to face that we have to try to make our bodies go through even more work that before.If you have any comments we would appreciate it if you would email us instead of phoning us.My state of mind is so bad that I will have to get some medical help today.By the way our coaching staff(Carlos) has been very understanding and helpful, but even he cannot turn this around for us. Grace Stafford

  23. I need to know about “seller financing”. The steps a new investor needs to take in approaching seller/owner. What are the questions that need to be asked?

  24. Hello Alice, you should speak to a real estate coach / investor concerning this question. Many regions of the country have Real Estate Investment Associations (REIA) where investors get together.

    Regards, Gary

  25. Hi Gary ,
    I would like to ask you ( Do i need to get Business credit card? )
    and i have a little problem with my personal credit card. i use over credit so i can not use any more for that card
    i am waiting for bank approve to pay off my card
    Please give me some advice for thant
    Thank you

  26. Hello Huynh,

    I do not know about business credit cards. I would ask the bank where you have the business account opened.

    Regards,
    Gary

  27. How do I change my password from the initial one given to me in the email? I was not prompted to do so on the first login.

    Thanks

    Sharon Fulford

  28. Normally, you would document the decision to wind up the affairs of the company in your minute book, close the company bank account, distribute the funds to the members, notify the state department that issued the tax license (if any), complete the state forms to cancel / terminate / dissolve the company and if there are two or more members, notify the IRS of the final tax return. Please email us if you would like assistance finding the state paperwork.

    Regards,
    Gary Bauer

  29. Do I have an assigned coach or mentor to answer my questions? I still do not understand why I have established an LLC and a management company since I do not have a home business at this moment. I am interested in the tax and other benefits involved in creating my own entities and creating my own bank and getting out of debt, etc. I would like to ask someone questions and get mentoring from Premier Mentoring.

    Cyndie Degnan

  30. Hello Cyndie,

    Our company was hired by Daeus Financial to setup the trading structure that you purchased from them. Please review the information on this web page for details on the functioning of the two companies. http://www.ebiz-learningmembers.com/trading/

    You have access to the educational materials provided by our company as part of the package that you purchased from Daeus Financial. We also have frequent Q&A calls on Monday evenings that you can participate in as well as recordings of previous calls.

    We can also provide some more guidance through email or phone conversations.

    We are not accountants and cannot provide financial guidance or mentoring / coaching on the business that you wish to establish. You should contact the companies who sold you the various packages that you signed with for details on the mentoring that may be available.

    Regards,
    Gary

  31. I am trying to detail every penny spent on my business so far. And I don’t even know what it cost me to receive your information on line. Are you able to tell me what it cost me and how I paid it?

    In Jesus,
    Kathy J

  32. Hello Katherine,

    We have not charged you or your credit card anything. You purchased a package from Daeus Financial and they contracted with us to provide entity setup and education at no cost to you. Please contact Daeus Financial for receipts.

    Sincerely, Gary

  33. Not sure if i still need to send a message if i just sent in a question but will do so. Just relistened to how to fill out the Minute book and noticed it said that it was recommended on which form (2553 or 8832) I should fill out. I do not have that recommendation anywhere that i can find and it also mentioned it being on the SS-4 upon our initial conversation, but i don’t see it there either.
    Does that mean that i do not need to do so??? I can just keep things as they are?

    Thank you
    June Amirault
    Red Horse Enterprises LLC

  34. The change of tax treatment to S taxation (2553) or C taxation (8832) is not normally required until your CPA requests the change. Our experience indicates that this change is helpful after your profits exceed $3,000 / month

  35. I should “be in good standing with my Secretary of State”. What do I have to do to accomplish this?

  36. Hello,

    We just purchased 6 workbooks for the training modules. After hitting “submit order” it directed me to a page where the first workbook we purchased came up. We printed that one off but are unable to locate the other five that we purchased at the same time. How can we get to where those workbooks are located so we can print them off as well.

  37. Hello.

    We just purchased 6 workbooks for the training modules. After hitting “submit order” it directed me to a page where the first workbook we purchased came up. We printed that one off but are unable to locate the other five that we purchased at the same time. How can we get to where those workbooks are located so we can print them off as well.

  38. I can no longer afford this membership, please forward the procedure if you require more than this message. It is my understanding that the membership is current until the December 2013 billing date. Please Advise!
    Thank You
    Morlene Gaines
    11/21/2013

  39. Hello Dori,

    Although you should contact your accountant or bookkeeper, I do not believe that a single-member LLC requires any special IRS tax filings, you should use Schedule C on your 1040 for any income or expenses.

    Regards, Gary

  40. I feel lost and overwhelmed with all of the paperwork included in the beginning phases of starting my own business as I do not have a business background. Is it possible to speak with someone about everything that I will need to do/steps I need to take, etc.?

  41. How long is my membership current for and can you please tell me if I am still incurring a charge?

  42. Any charges would be from Daeus Financial since we do not have your credit card of banking information. We were informed by Daeus that your account with them is no longer active.

  43. Please ask questions as you have been doing. We can also be reached directly by email or phone as well as our Monday night calls.

    Regards,
    Gary

  44. Hello Robert,

    Two separate FedEx packages were sent. 1) the box, binder and seals and 2) the paperwork to put in the binder. This was shipped under FedEx tracking number 584595388923 which indicates that it should arrive Feb 26th.

    Regards,
    Gary

  45. I have tried to call on Monday night and I only get music I call at 8:00pm I live in Boonville in. can u help me figure out what time to call

  46. For those of you who are having difficulty with getting in to the the online seminars, you might want to check to see if there is a time difference depending upon where you are and where the call is originating. I am on the west coast and if the call is coming from the east coast, I have to call in 2 or 3 hours earlier. Hope this helps.

  47. I am confused about the fiscal year for the entity with a birth date of May 4,2015. What dates do I use when filing Form FTB 3522? What is a Certificate of Registration? Do I have one? Or do I need to request one? When are the annual LLC taxes due? We attempted to meet with a CPA however, he stood us up.

    Storybook Property Enterprises, LLC
    Sheila Lancaster

  48. The state of California has a Dec 31st fiscal year end, however the Franchise Tax Board requires payment during the first year of the creation of the company, and then again the following year(s).

    You should submit the FTB 3352 ASAP.
    “Filing Guidelines
    LLCs Treated As Partnerships
    • All LLCs (not classified as a corporation) that are doing business in California, or file an article of organization or certificate of registration with the Secretary of State must file Form 568, Limited Liability Company Return of Income, pay the annual minimum franchise tax of $800, and LLC fee (if applicable). “
    I’m not sure what a certificate of registration would refer to.

    In addition to the Articles or Organization that we sent to you, you should have completed the Statement of Information with Secretary of State – LLC-12 http://bpd.cdn.sos.ca.gov/llc/forms/llc-12.pdf

  49. in one of the training films it stated that you can assist in setting up a check book IRA please let me know where to obtain this info

  50. In regards to Partnerships involving husband and wife, (sorry) with the representative being the husband, how could we list the
    wife so as in regards to banking, both are eligible to perform banking needs without the other being present?
    In the video you have listed President, secretary, and treasurer positions. We are both owners, but both can’t be listed as president, correct?
    Any suggestions would be beneficial with it just being the two of us.
    Thank you!

  51. Hi Gary, 8/7/2015
    I am unclear how I should designate members and percentage: I even checked out FAQ’s for any info.

    Firstly, My MANAGEMENT C LLC “IRONWOOD RESOURCES”, How I should designate “Members and Numbers of Units”.
    Compared to (“Sweet Clover Assets”, My TRADING LLC) which I have setup as 90% myself and 10% for IRONWOOD RESOURCES. I have setup the Certificates w/ this percentage for each of us.
    I Believe I have the minutes setup correctly in my trading LLC minute book.

    In (IRONWOOD RESOURCES – MY C-LLC) minute book, I’m not clear on how I should designate myself or the names of the trading LLC or Mgnt LLC in the pages of the minutes, specifically number of units/percentage. Even though I watched the video several times, I didn’t catch how I should make the designations in the Mgnt LLC.
    Secondly, If I get this straightened out, then I can fill in the CERTIFICATE’s for myself and for any designated entity in the MANAGEMENT LLC book.
    I will be on the call next Monday night 8/10/15.
    By the way Thanks for the info last Monday night, Good info to take to my bookeeper.
    Hope I made this clear enough for you to follow my thinking.
    Thanks
    Rey

  52. I did not receive in my minute book the Waiver Notice of First Meeting of Organizer, Minutes of First Meeting of Organizer, and the Written Consent of Action Without Meeting of the Organizer.

  53. Regarding the Common Shares of the Corporation, do we have to assign all the shares designated to us or can we leave some undesignated shares in the corporation and assign a percentage of the common shares. What is the purpose of the common shares anyways? Why do we need them at all?

  54. Couple questions:
    1. As a single member LLC where I am the Manager and my Trust is the Member, how do I go about giving myself a different title, like President?
    2. When I am signing legal documents, do I sign them as “Nathan Nakagawa, President”? This is assuming I change my title to President.

  55. During the video to complete your minute book; under the minute tab you mention a few forms “Waiver of Notice of First Meeting of Organizers of _______”, “Minutes of First Meeting of Organizers of ______” and “Written Consent of Action without meeting of the Original Organizer of _____”. I do not see these forms in my book. Am I suppose to have a copy in my minute book?

  56. Hi, we have had our first meeting successfully, now we need to keep track of decisions we make in between meetings. Is there a form used to write that information or just writing it down on a piece of paper just as good?

  57. Hello Charlie,

    You can keep track of activities any way that you wish. You should plan on holding meetings weekly at the beginning and as the number of resolutions decline, monthly or quarterly may be sufficient.

    Regards, Gary

  58. Hello,
    I’ve assumed there is no “call-in” today due to the Holiday.
    This question is regarding our trading LLC; we’d like to know if we went about this incorrrectly… We followed all the instructions we’ve been given since we began working with Y.E.S. & EBiz Learning, but our trading training is still not complete… we haven’t officially opened for business by opening our trading account.
    It’s beginning to feel like the cart came before the horse with organizing our LLC, advancing funds in the form of a loan, etc. Should we have waited? It’s too late now, we suppose, because our Resolutions are in order… the LLC has been making payments on the loan, but we aren’t investing yet.
    Funds are dwindling; do we create a resolution and suspend payments till we ARE investing? Do we keep going and loan more money to the LLC? We tried so hard to not make any mistakes. It feels like we never knew the right questions to ask until hindsight.
    Thank You for any help!,
    Deena & Jeff

  59. Hi, I met with my tax prepare this afternoon. Showed her our Article of Organization and prepared binder. Shw wants to know if we were set up as s Disregarded Entity, Corporation, or Partnership? I indicated a Corporation. Can you confirm our status?

    My Bookkeeper may not be able to manage our bookkeeping for Eskie Investments. Any referrals?

    My phone number is 559-346-7168

  60. good morning I started with taking 160,00.00 out of my 401k taxes left me with 123,000.00 I put 60,000.00 into specialize IRA 30,000.00 out to pay for nick,s school on loan and 25,000.00 to pay for three day private mentor .purchased a property 63,978.00 total did some work on the property ling 8,000.00 paid credit card bills for starting up the business . my cpa said I owe 40,000.00 dollars for taxes what do I do .
    1 410-591-7163

  61. Hi there, where is the Monday Q&A dial in number? I have looked on the home page and do not see it. I was sent an email that eluded to a regular Monday evening call.

    Bianca

  62. Our LLC that you helped establish is a multi member entity with my wife and I as members. Are there any problems now or down the road if Sue and I each own 50% of the LLC?

    Tom Kosel

  63. Hello,
    I am using a MacBookPro. The items in the frequently asked questions do not expand or go to another link.

    Thank you for your help!

    also I cannot make most of the Monday night meetings as I get home from work at 8PM Pacific time. Do you have recordings I can listen to?

    Kimberly Burrows-Egan

  64. I’m in Kentucky and have set-up a LLC. I recently received a Labor Law Compliance Request Form from Corporate Compliance Services stating that I need a labor law poster for the workplace. Effective 1-31-16 private sector employers must post a new NLRA entitled “Employee Rights Under the National Labor Relations Act. (pursuant to federal law 29 USC Sec. 999 (i) & 29 USC Sec. The cost is $84.00. Do I need this poster?Can you please respond to me.
    Thank You,
    Larry Weber

  65. Hello Tony,

    This is a common question and we have recorded the discussion several times. Type – add member – in the search box at the upper right corner of the web page “Completing your LLC minute Book” and listen to any of the conversations that are listed. You can use the sample template found in the attachments section of this page as well.

    Regards, Gary

  66. Do you still have the training video that discusses the Operating Agreement, Minutes, Certificates, etc. when i first received my Record Book?

    If so, where can i access it?

  67. Hello Jesse,

    Use the drop down menu “My Modules” and select “Completing your LLC Minute Book” for the video you are looking for.

    Regards, Gary

  68. I have just completed my minute book and wanted to make sure I didn’t miss anything. During the video, Wendy discussed that if we were registered as a C or an S, there was another form we needed to complete within a relatively short time frame. I didn’t see that form in my minute book but wanted to make sure that I didn’t need to complete the form 2553.
    To be clear, I wanted to find out what type of LLC, A Golden Property, LLC, is. Is it a C or an S? Thank you very much!

  69. Hello Denise,

    The LLC is currently a single member / multi manager company. It is a “disregarded entity for taxation purposes”. When your CPA suggests that you would benefit from a change in tax treatment, they will provide you with a 2553 (S election) or an 8832 (C election) form.

    Sincerely, Gary

  70. I am told that if I wait until I am clearing $40,000 dollars to do a sub-chapter S as opposed to just doing it now upon start up, there may be some tax issues at the time I do the switch to the sub-chapter S. What would be a reason NOT to do the Sub-chapter S upon start up? I just want to make sure I’m doing it correctly from the beginning.

  71. Hello Patricia,

    Using the Small business tax election from the beginning will require the use of an accountant and quarterly tax paperwork – this may be an additional cost you do not wish to have at this time. I am unaware of any tax issues on changing from a default LLC to a Small business. Contact your accountant to determine when / if you should consider using the S election.

    Regards, Gary

  72. I want to remove a member from the LLC. I read the instructions under the membership line but I want to know where I am suppose to document the changes. Where do I write all the information down?

    I also have a question regarding the companies change of address. Who do I contact to change the companies address?

  73. I want to remove a member from the LLC. I read the instructions under the membership line but I want to know where I am suppose to document the changes. Where do I write all the information down?

  74. How long is this initial membership

    What is the cost for membership after initial membership runs out

  75. I want to incorporate my Real Estate Business. My current entity is for Stock Options but I purchased the multiple package where I can add an entity if needed I believe. Please confirm this information and let me know so we can start the process.

    Kind regards,

  76. Hello Nestor,

    We can help setup as many different companies as you wish. Please email me gary@yourentitysolution.com with 2 choices of company names and I’ll send you a setup form. The total fee for a Florida LLC would be $327.

    Thank you,
    Gary

  77. You could also re-purpose your existing LLC if you are not using it for Market Trading.

  78. What is my Business Tax Type for Nevada?

    Modified Business Tax
    Sales Use Tax
    Consumer Use Tax
    Certificate Of Authority
    Excise Taxes

    I have not bought or sold anything. I received my Nevada Commerce Tax Form In the Mail

  79. Hello Mary,

    Please use the link / number in the letter to use the pre-populated web form for Nevada; indicate that your income is less than $2 million dollars. I believe that the form removes most of the fields ‘magically’.

    Regards, Gary

  80. Hi,
    Looking for clarification here. We got our EIN and our LLC’s Articles of Organization for California.

    1. Do we personally fill out, mail and make payment for the Statement of Information Form LLC-12?

    2. Do we personally fill out, mail and make payment for the Form FTB 3522 aka 2016 LLc Tax Voucher 3522

    We appreciate your support. Thank you!

    Lawrence & Robyn Morris
    310-989-9457

  81. What do I do if the 8832 form has not been filed within the 60 days of LLC (4/11/16)filing? Is it ok to just go ahead and send it?

  82. Hello Terry,
    You can search online for North Dakota Registered Agents and list should pop up. We use ParaCorp – a national service – (800) 533-7272.

    Regards, Gary

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