q and a 2011

19 Dec 2011

where we discuss [2:30] initial meeting and paperwork as a sole member, how many units should be assigned; [6:30] documenting loans and transfers with your bank account, how do you get taxed?; [9:00] do you need to buy the additional workbooks? [11:00] using LLCs for rentals or flips; [15:30] does your state have a Franchise Tax?; [17:00] if you are the sole member how do you decide on the number of units? what do you place on Schedule A?; [21:30] how big should your capital contribution be?; [24:00] as a sole member what do you place on Schedule b or C?; [26:00] should you use sub-Chapter S or Chapter C for your LLC tax treatment if your business involves real estate?; [29:00] how does is flow-through LLC reflected in your income tax return?; [30:00] issuing certificates as a single member; [33:00] assigning an EIN and a bank account to your Series LLC; [37:30] signing a certificate as a single member; [38:30] using a California bank for a Nevada LLC; [43:00] dissolving / terminating / cancelling your LLC or Corp; [44:30] the proper use of the LLC data sheet; [45:30] the tax choices and consequences of earning money outside of the USA; [57:00] some issues with out of country banking; [59:00] using your LLC with a business PayPal account; [59:30] what business addresses to use if your registered agent is in Delaware; [1:03:30] banking in Panama?;

12 Dec 2011

where we discuss [1:00] changing your business address, RA Address, office address by Amending your Articles of Organization; [5:00] when is the initial meeting needed, what happens if there is only one person to act as all of the officers or managers; [8:00] Assigning a web site (or more than one) to a LLC or Corporation, getting business cards; [12:00] finding out who is the Resident agent for your company; [15:00] where does the money go? how taxes are paid; [20:00] when should you use a 2553 for S Corp tax treatment; [33:00] What is the difference in liability protection between a Corporation or and LLC; [36:00] if you company is being taxed as an S Corp or S LLC, do you have to send in a 2553? what is the CT6 that the state of New York requires?; [39:00] using a “WAIVER of NOTICE” or a “WRITTEN CONSENT of Action” to document business decisions and resolutions; [50:00] who decides how many shares a Corporation has? how many units an LLC has? what does ownership mean?; [56:00] using a series LLC for unrelated businesses or different partners;

5 Dec 2011

where we discuss [1:00] how to handle unauthorized returns; [3:00] how ownership should be split between husband and wife; [6:00] partnership LLC and flow-through tax treatments; [7:30] who are the people listed in Schedule A; [10:00] Spanish web sites; [12:00] using a “Written Consent of Action without a Meeting” to document loans for start-up costs and/or operational expenses; [22:00] when is a members meeting required; [24:00] issuing certificates for new members; [30:00] using a Cell in a Series LLC to separate taxation and liability; [39:00] splitting costs among Cells or different LLCs – allocation; [42:00] Resident Agent choices and should you worry during the first year; [50:00] Using an LLC for rental properties; [57:00] when do you need a business or sales tax license; [60:00] using a PayPal account and a bank account for your on-line store; [64:00] the importance of using promissory notes to be repaid for start-up or operating expenses;

21 Nov 2011

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where we discuss [1:00] Trusts, estate planning, tax consequences of adding / removing a member, why should you use a trust; [9:00] paying yourself, W2 or 1099s vs an owner’s draw, when should you change, S corp taxation; [19:30] what is needed for annual meetings, what needs to be documented, accumulating financial information, using a personal credit card or a personal check; [26:00] start-up expenses vs. operating expenses; [29:00] being a sole member in a Series LLC, electing yourself to the various positions, accounting for money that you have invested in the LLC, loans and promissory notes; [33:00] re-paying a prom note and managing cash flow, description of a typical prom note, transferring assets into a company;

14 Nov 2011

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where we discuss [1:00] what to do if you want to sell your company or transfer it to someone else; [8:00] how long does an EIN last; [10:30] how to get paid from your company – owner draws vs distributions, what happens if a trust is the owner; [13:00] prom notes, operating expenses and start-up expenses and whether you can write off any of them; [20:00] using your company to buy health insurance; [23:30] using a trading account and an LLC; [25:00] the difference between capital contributions and loans [ 27:00] using a DBA or a foreign registration; [27:00] naming your Series LLC and what makes Illinois different; [34:00] online sales and consulting in the same LLC and how to decide if that is OK; [37:00] company meetings and resolutions and management approval; [40:00] differences in authority between a member an a manager; [45:00] what does a prom note require; [47:00] resolutions to buy or transfer equipment;

where we discuss [1:00] Paying yourself; [10:30] should you do your own bookkeeping; [16:00] income protection insurance; [17:00] the importance of a businss plan; [23:30] writing off a trip to Argentina; [25:00] timeliness and completing state paper work – New Jersey and elsewhere; [30:00] using a business bank account to write off business expenses and using Quickbooks effectively;

where we discuss [1:00] what to do if you and your spouse are members but only one of you is the manager; [3:00] who to use a virtual office or other business address; [6:00] lending your company money and documenting the loan; [6:30] revocable living trusts and signing as the trustee; [10:30] stock / options trading, should your capital contribution be the same as your brokerage account; [17:00] setting up a second cell in a series LLC for a new investment partner; [21:30] moving property into an LLC for liability protection, using a commercial liability umbrella insurance policy, why do you need an LLC anyway; [30:30] how many properties should one LLC own; [58:30] keeping track of the money you are lending your company;

where we discuss [1:00] some points to consider when you start a web based or online business; [5:30] being your own registered agent (RA) or using a third party; [14:00] websites and LLCs – how many sites can you place in a Series or Standard LLC; [18:00] removing your spouse as a manager of your company; [20:00] using the minute book as a single manager in a company; [24:00] when should you keep cells separate and why; [33:00] how much does it cost to maintain a Nevada LLC? Answer $500; [35:00] setting up a bank account and waiting for an EIN;

where we discuss [1:00] using a Virtual Office for Registered Agent, tax and state address requirements; [7:00] opening a business bank account or brokerage account [9:30] adding part-time activities to your LLC [10:00] options or stock trading structures; [13:30] licenses for internet sales and multiple web sites; [19:00] starting a series – written consents and waivers of notice; [27:00] using your IRA for investments; [51:00] personal stock / options trading tax deductions; [53:00] blogs, multiple web sites and LLCs; [54:30] issuing certificates and the number of units to assign; [56:30] using your personal SSN as a guarantor for a company account; [58:30] setting up bank accounts for series LLCs; [1:02:00] completing Series Exhibit B_1 and A.1 [1:08:30] Certificates and proof of ownership;

where we discuss [1:00] California Franchise Tax Board and the $800 minimum fee; [8:00] using the home you rent as a place of business; [16:00] real estate investing with a series LLC and partners; [19:30] Financial records, the Minute Book and Quickbooks; [21:30] Capital contributions and using a prom note or loan to document the funds you have provided during the start up of your business; [28:00] should your company file a 2553 or 8832 for S or C tax treatment; [36:00] do you need sales tax permits in the state the LLC is located and the state where you live; [37:30] how much is your LLC certificate worth; [39:00] Delaware Franchise taxes and Sales taxes; [45:00] Should you file Quarterly reports;

where we discuss [0:00] using a prom note or loan to document the funds you have provided during the start up of your business; [2:00] using your personal bank for a business bank account; [5:00] using a two company strategy to maximize deductions for stick / options trading; [11:00] what to do if you want to abandon your company; [16:15] state renewal fees; [18:00] when does your company have to become profitable;

19 Sep 2011

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where we discuss [0:00] moving or changing your business address and your registered agent address; [6:15] changing your title as a manager or officer of the company; [7:30] using a management company and a holding company together; [18:30] how to order products from your online store for another company you own with different partners; [22:30] the difference between a revocable trust and an irrevocable trust and how to use them with your LLC; [29:15] using trusts to own your LLC; [32:15] do officers / managers have to be shareholders / members as well; [33:45] capital contributions and loans and how to get repaid by your company;

12 Sep 2011

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where we discuss [1:00] capital contributions and operating costs; [6:30] minutes – what should you record and how do you record them; [10:30] who are the officers of a company and how do you add a spouse; [15:00] what address should you use when you have a virtual office; [17:00] California state sales tax ID or reseller’s permit;

29 Aug 2011

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where we discuss [1:00] the Franchise Tax Board in California, Texas and any other state that has an FTB; [5:00] the financial benefit of having an LLC or a Corporation; [13:30] adding other lines of business to your LLC or Corporation; [18:00] adding other people’s businesses to your LLC; [22:00] paralegals and monthly charges; [24:30] changing personal expenses to business deductions; [29:00] documenting transactions to avoid co-mingling funds; [31:15] when becoming an S corporation is a good idea; [37:00] operational address <em>vs</em>. a virtual office address; [39:15] does your LLC pay taxes or do you pay taxes; [40:30] how becoming an S LLC can postpone paying the CA FTB fee; [42:30] how many times can you lend your company money; [44:00] the Amazon affliate problem; [47:45] should you treat previous expenses as a loan or a contribution; [49:15] CheckBook IRA LLCs and alternative investing strategies; [57:45] questionable company renewal services; [59:30] when state renewal fees are due;

22 Aug 2011

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where we discuss [0:30] the difference between fees for the California Secretary of State and the Franchise Tax Board; [4:00] Workbooks and on-line training products; [5:30] Not all states recognize Series LLC names; [8:15] Multiple LLCs and state fees; [9:45] when does converting your LLC into a C Corp make sense for real estate; [19:30] adding your spouse as a member, meetings and certificates; [21:30] Banking with Series LLCs; [22:45] lending money to your company as you are starting up your business; [26:00] resolutions to cover prior expenses; [27:00] does your company need corporate credit now; [28:15] lending your company money to cover expenses; [28:30] adding a partner to your LLC; [29:15] is an LLC the right place to start your business or should it be a Corporation; [37:00] setting up a new series for a business partner; [39:00] using a dba for a Series LLC; [43:30] different types of real estate activities; [52:15] holding rental properties in different states; [54:15] living in one state and doing business in another state – is foreign registration needed; [57:00] what is the formal name of a series LLC and how do you decide when to set up a new series; [58:00] adding an equity partner and determining the value of your LLC; [1:05:30] using a series in a non-series state; [1:09:15] annual state fees;

15 Aug 2011

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where we discuss Exhibit B and the intended business purpose; Exhibit A when you don’t have a bank account yet; Meetings and Resolutions; Written Consent; Waiver of Notice; changing your address; using loans to the company; does your online business need a local sales license; virtual offices; issuing membership certificates to your spouse; president, secretary, treasurer in a single member LLC; when do you need members; what is the difference between a member and a manager; the importance of certificates; moving from a sole proprietor to an LLC;

18 Apr 2011

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where we discuss [1:15] foreign registration and liability protection; [6:00] series LLCs and Florida; [8:00] changing the LLC name when doing a foreign registration; [11:00] when should you start a new series; [26:00] single member minute book paperwork; [39:30] web site ownership; [43:30] personal money and business accounts; [45:30] loans and promissory notes; [53:30] company strategy for FOREX, stock or options trading; [1:03:00] California and the FTB; [1:07:30] sales tax and resellers permits; [1:17:00] documenting business business decisions – meetings; [1:25:00] banking when your LLC is not in your own state; [1:37:00] business licenses, sales taxes and permits; [1:42:30] insurance, risk and liability; [1:51:30] completing your minute book; [1:57:30] using a loan and promissory note or a business expense write-off; [2:00:00] LLCs and Canada; [2:04:30] how many units can a normal LLC have for the certificates; [2:06:00] issuing certificates to your Family Trust; [2:06:30] business insurance;

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where we discuss on-line businesses; reseller permits; banking; series LLC initial and annual meetings; assigning certificates; what to do if you are the only person in your company;

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where we discuss taxes; owner draw; quarterly tax filings; where did Gary go?; showing proof that your company exists; change to banking for out-of-state clients; web sites; what to do if you are the only person in your company; minute books; privacy trusts;

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where we discuss community property states and single or multi-member tax choices and asset protection; loans; virtual offices; owner draw; annual renewals; eCommerce; minute books; working with your team; Fictitious Business Name (DBA); how management LLCs and real estate LLCs work together;

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where we discuss what to do if you are the only person in your company; the California Franchise Tax Board; why a major goal of a business is to reduce taxable income; a detailed page-by-page walk-through of a Series LLC Minute Book; thinking outside the box for funding sources; using one LLC for multiple business activities;

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where we discuss registered agent and the pros and cons of a professional service; eCommerce sales licenses; lines of credit and a virtual office; what is required if you are the only member in a company; privacy vs marketing; how do you decide if your company should be an S Corp; choosing your team;

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where we discuss planning to add members in the future; how to fill out your minute book if you are the only person on the company; being your own registered agent or hiring a service; capital contributions or loans; business credit and your company; living trusts; virtual offices; will the IRS shut you down if you don’t make a profit; combining high risk and low risk businesses;

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where we discuss adding a business partner who is investing in your LLC; an overview of the minute book initial meeting; How a Nevada LLC works if you don’t live in Nevada; business nexus and the changing state rules for sales tax; building Business credit and a virtual office; what is required if you are the only member in a company; forms 2553 and 8832 – how do you decide if your company should be taxed as an S Corp or a C Corp; picking the right accountant / bookkeeper / coach;

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where we discuss adding and removing business partners; liability protection and asset protection; how to use a Nevada LLC with a company in your home state; the limits on how many businesses can use the same LLC; how to fill out your minute book if you are the only person on the company; when to issue shares or certificates; when should you send in the 8832 or the 2553 to the IRS; what documents do you need to send to the State of Nevada; on-line banking services; why converting expenses saves you money; using your corporate seal; sharing an EIN; capital contributions or loans; hiring employees or independent contractors;

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where we discuss the number of registered agents you need for a series LLC; walk through the initial meeting for a single member LLC; banking resolutions – what are they?; problems with the IRS and EINs; using a Nevada LLC for eCommerce or an LLC in your state for eCommerce; how long is Y.E.S. your registered agent?; Canadian Banking issues; Drop-shipping sales taxes; Medical reimbursement programs; using your personal credit card for company expenses; Nevada sales tax; stock market trading; using Google Voice to keep your phone number private; registered agent scams;personal asset protection; what protection an LLC provides;

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where we discuss using 2 LLCs one in Nevada and one in your home state and how to use DBAs or fictitious business names; what to do if you have to pay company expenses with personal funds (avoiding co-mingling of funds); promissory notes; completing your series LLC exhibit A and exhibit B paperwork; capital contributions; certificates and certificate logs; written consent of action without meeting; completing your minute book; changing the “laws” of your company; banks and series LLC accounts; being the only person in your company; when to change tax election to sub-Chapter S and why; minute preparation service; do you need a business license?; setting up bank accounts for your out-of-state LLC; paying taxes on income from your Nevada LLC in your home state; how many web sites (or businesses) you can have in a single series or LLC; Options trading and trading accounts; resident agent locations; network marketing MLM; why you need an LLC anyway;

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where we discuss using a DBA for different business activities and different marketing purposes; recording loans as part of a meeting; using a waiver of notice or a written consent of action to document business / legal or financial decisions; converting personal expenses into business deductions; should your IRS address be the same as your business address to improve your business credit score; business nexus laws as they relate to Nevada LLCs and foreign registration; starting a second series and DBAs; when do you need a foreign registration; Canada has different tax rules and different risk / liability issues; when you can apply for a company bank account and credit card; the optional workbooks; registered agents and who can be an agent; why a DBA is a good thing; C Corporation and S Corporations and LLCs; what is a “flow-through” entity; banking, sales permits and foreign registration; options trading and using virtual offices; minute book walk-through and initial meeting;

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where we discuss how to start a series; being the only person in your company and the initial company meeting; loans to your company and co-mingling funds; California Franchise Tax Board and S election; how to use your LLC when setting up your web sites; adding partners to your LLC; running your company by yourself; walk-through of a Series LLC minute book and the inital meeting; issuing certificates to yourself; trading stocks and using the 2 company strategy – a management company and a trading company; conformed copy of banking resolutions; registering multiple series with California; using your LLC with a bed and breakfast; title transfer for real estate; what title should you use when signing documents;

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where we discuss using DBAs effectively; adding websites to your LLC; when you need to set up another series; how to setup a series for a family member; resales tax permits; using virtual offices and bank accounts; series minute book walk-through; Nevada Initial Lists and Business Licenses; Foreign Registration and state fees; how formal do your minutes need to be; changing your LLC name for a credit building program; the banking package email and opening a bank account;

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where we discuss how to complete the Series Minute Book and the type of businesses that can be operated; what to do if your bank won’t add Series to the account or the credit card; transferring ownership of your car/truck into your company; how does your CPA charge you; review the minute book and operating agreement; completing the LLC minute book; recovering expenses; what to do if you buy property before you set up your LLC and complete the minute book; using loans to give the LLC more money; where to emboss the seal and where to sign on your certificates; what to do with the “voucher” at the bottom of the IRS confirmation;