Post Archives for IncNow

Do LLCs Have Stock or Shareholders?

By IncNow April 3, 2025

We often get questions about LLC stockholders, bylaws, stock certificates, directors, minutes and sometimes a Limited Liability “Corporation.” It’s understandable to have questions about how LLCs are structured and operate. Here’s what you need to know. Are there shareholders in an LLC? Limited Liability Companies do not have stock or bylaws. In fact, LLCs have […]

Continue Reading

Do LLCs Have Stock or Shareholders?

By IncNow January 27, 2025

We often get questions about LLC stockholders, bylaws, stock certificates, directors, minutes and sometimes a Limited Liability “Corporation.” It’s understandable to have questions about how LLCs are structured and operate. Here’s what you need to know. Do LLCs have stock? Typically, “stock” is not the term used for LLC ownership shares. In most LLCs, the […]

Continue Reading

What Does the President of a Corporation Do?

By IncNow
question man

Whether you’re interested in forming a corporation or are just curious, it’s understandable to wonder, “What does the President of a Corporation do?” Traditionally the President of a Corporation is the highest executive officer. The Bylaws of the Corporation set forth the role of the President. Some businesses have also established higher offices, such as […]

Continue Reading

Tax ID vs. EIN: What’s the Difference?

By IncNow January 21, 2025

Incorporating your company is an exciting process, but the work isn’t done after you form an LLC or Corporation. After that, there are several more steps to take, like getting a tax ID number for your business. The process of getting a tax ID isn’t complicated, but there is often some confusion about what, exactly, […]

Continue Reading

What Is Evidence In Business Formation?

By IncNow January 2, 2025

“Can I see your evidence of filing?” That is what the banker said when I went to open my business account. The banker then said can I see your “articles?” How about the “proof” your company was formed? These terms are all synonymous.  Banks need certain documents for “know your customer” law compliance under the […]

Continue Reading

Do I Get a Business License or Delaware LLC First?

By IncNow February 17, 2024

Is the first step applying for a business license or forming a Delaware LLC? Unlike the chicken or the egg, this question has a definitive answer – the LLC formation comes before the business license. In order to begin doing business under a business license, you must first have formed the applicant. The LLC should […]

Continue Reading

Does My Delaware LLC Have To Pay Franchise Tax?

By IncNow October 24, 2022
franchise tax

If you’ve formed an LLC but haven’t done business this year, you may be wondering if you need to pay the Delaware franchise tax. Here’s what you need to know. What Happens If I Don’t Pay the Delaware Franchise Tax? If a company fails to pay franchise tax, it will eventually lose its good standing […]

Continue Reading

What Is a Loan Out Company?

By IncNow October 10, 2022
actor pointing out at sea

An increasing number of people are finding themselves either self-employed or engaging in short-term employment arrangements. These individuals are typically actors, content creators, gig economy workers or consultants. These employment arrangements can come with many benefits, however, they may also pose a tricky tax situation.  An effective strategy for self employed individuals to reduce their […]

Continue Reading

How to Become an LLC: 5 Easy Steps

By IncNow August 31, 2022
5 steps

If you have your own business, you may benefit by forming an LLC. An LLC keeps an owner’s personal assets separate from any business assets. LLCs can protect owners from liability in the event of a legal dispute with a creditor, or even a business partner. This is true even if your business does not […]

Continue Reading

What Is a Delaware Certificate of Incumbency?

By IncNow July 22, 2022

If you have applied for a loan with your corporation as the borrower, you may have heard the term “Delaware Certificate of Incumbency”. What is a Delaware Certificate of Incumbency and when do you need one? What Is a Delaware Certificate of Incumbency? A Delaware Certificate of Incumbency is a document signed by an officer […]

Continue Reading

General Partnership vs. Limited Partnership: What’s the Difference?

By IncNow

“The only ship that doesn’t float is a partnership”. This is common when consulting entrepreneurs who are considering bringing on a business partner. While a general partnership is the oldest business organization, it is the worst choice possible. This is because general partnerships are laden with traps that could easily end in financial ruin for […]

Continue Reading

Do I Need to Change My Delaware Business Name with the IRS?

By IncNow July 11, 2022

Changed your Delaware business name? Updating your branding may require a business entity name change with the Delaware Secretary of State. Notifying the IRS of your corporate or LLC name change is an important second step. In most instances, a name change will not require a new EIN but a simple letter to provide notice […]

Continue Reading

Should I use a Series LLC, Multiple LLCs, or an Umbrella LLC?

By IncNow

Serial entrepreneurs often explore multiple opportunities simultaneously. To start a new line of business, you may not need a whole new LLC. You can use your current LLC and put various lines of business under one entity. This practice is often referred to as forming an Umbrella LLC structure. Using an Umbrella LLC for multiple […]

Continue Reading

Do I Need a Delaware Business License for My Delaware LLC?

By IncNow

Starting a new business comes with navigating new waters and that includes what licensing is required. Business licenses are often issued at the local government level and are required for you to conduct business. This license allows the governing agency to verify that you are following the rules set in place to protect the public […]

Continue Reading

What is an Umbrella LLC?

By IncNow May 23, 2022
umbrella

A serial entrepreneur will often form multiple “brother-sister” companies to keep their assets from becoming commingled. But having partners that own an interest in each of these companies can generate separate partnership tax returns for each entity. One way to simplify this is to form a holding company with the partners. You can reduce the […]

Continue Reading

Can I Form a Non-Profit LLC, 501c3?

By IncNow
B Corp

Philanthropists often ask if an LLC can be a non-profit. What they are referring to is the 501c3 tax-exemption status. 501c3 status is a coveted designation because it exempts a company from federal, sales, and property taxes. These exemptions are crucial to the function of non-profit organizations.  IRS regulations do not allow LLCs to be […]

Continue Reading

What is the Best State to Incorporate in?

By IncNow April 26, 2022
why delaware

It can be intimidating to choose a state to incorporate in. You don’t need to incorporate in the state where your business physically resides. Instead, you can form your company anywhere. Which is the best state to incorporate in? Here are some things to consider. Things to Consider When Choosing a State to Incorporate What […]

Continue Reading

The Difference Between the Delaware LLC and Corporation

By IncNow
LLC vs Inc

The Delaware Limited Liability Company Compares Favorably to the Delaware Corporation When starting a business, you probably have a lot of questions, including “Is an LLC a corporation?” and “Where should I incorporate?”. You do not have to incorporate in your home state if the laws there are unfavorable to protecting you. Instead, you can […]

Continue Reading

Does My Delaware LLC Have To Pay Franchise Tax?

By IncNow
franchise tax

If you’ve formed an LLC but haven’t done business this year, you may be wondering if you need to pay the Delaware franchise tax. Here’s what you need to know. What Is the Delaware Franchise Tax, Again? Franchise “Tax” is often misinterpreted to mean that the fee will be calculated based on profits or capitalization, […]

Continue Reading

What Does LLC, Inc, Co, Corp, and Ltd Mean?

By IncNow
types of entities

You may be asking “What does LLC stand for,” “Which entity should I choose,” “What is Inc.,” “What does Co. mean,” “What is LLC,” or “Ltd vs. LLC?” Before you incorporate, you need to choose which type of entity is right for you. This isn’t something you’re born knowing, and they don’t teach it in […]

Continue Reading

How to Verify Business Ownership for Your LLC

By IncNow April 8, 2022
LLC ownership

At some point, you may be asked to show proof of ownership, also known as proof of entity, for your LLC. The request often happens when you open a business bank account. If you’ve never needed to prove that you own your LLC, it’s understandable that you might be unsure of what to do next. […]

Continue Reading

What Is a Subsidiary Company, Exactly?

By IncNow
Google headquarters with statue in front

People throw around the term ‘subsidiary’ in business. Google, for example, recently made headlines when it was announced that its parent company, Alphabet Inc., is breaking into subsidiaries. It’s understandable that you might not be exactly clear on what it means. Subsidiaries are important but often fail to get the attention they deserve. Business and […]

Continue Reading

What is a Delaware Certificate of Good Standing?

By IncNow March 14, 2022
good standing

You may be asked for a certificate of good standing at some point in your company’s existence. It’s a good idea to know in advance what exactly this is. A Delaware Certificate of Good Standing is a one-page document. The Secretary of State issues it to prove a company’s ability to do business. The Secretary […]

Continue Reading

Why Should I Incorporate in Delaware?

By IncNow February 16, 2022
why delaware

Incorporating in Delaware has many advantages and benefits over incorporating a business in your home state. Before explaining the advantages of incorporating in Delaware, it is important to know you are eligible to run your business as a Delaware corporation or a Delaware LLC no matter where you live. Do I Need to Live in […]

Continue Reading

Why the Delaware C Corp Is a Good Option for Startups

By IncNow February 9, 2022
C Corp

Delaware C corps are a popular choice for some companies due to their ability to attract investors. Startups in particular can benefit from a C corp tax designation, but it’s understandable to have questions about how, exactly, this works. Here’s what you need to know. How the Delaware C Corp Can Help Startups While every […]

Continue Reading

What Is Shareholder Primacy, and Why Does It Matter Right Now?

By IncNow January 5, 2022
shareholder primacy

We’ve been living through a global pandemic for nearly two years, and some companies are still trying to balance how to benefit the public while attending to corporate obligations. In this COVID-19 crisis, is it within the discretion of the board of directors to change manufacturing lines to produce masks and other personal protection equipment […]

Continue Reading

What, Exactly, Does It Mean to Incorporate?

By IncNow
Delaware corporation

The concept can be confusing at times, but there is a difference between forming a business and incorporating. Interested in incorporating your business, but not sure exactly what it entails? Here’s the definition of incorporating, plus what it means to incorporate. How Do You Define Incorporate? In the U.S., incorporating a business is something that […]

Continue Reading

Do You Need an Incorporation Lawyer?

By IncNow November 2, 2021
incorporation lawyer

An incorporation lawyer specifically focuses on the laws surrounding the business of forming and maintaining corporations and LLCs. An incorporation lawyer can help ensure that your company is properly formed and in good legal shape. But not everyone needs to hire a lawyer to help form their company.

Continue Reading

Why Form a Public Benefit LLC?

By IncNow September 24, 2021
public benefit LLC

You may have heard of a Public Benefit Corporation, which is a for-profit corporation with a stated public benefit purpose in its Certificate of Incorporation. This allows corporate directors to balance stockholder profit with specific community benefits. Ordinarily, a traditional corporation cannot divert resources for public benefit unless doing so maximizes shareholder value. The Public […]

Continue Reading

What Is an LLC and What Is Its Purpose?

By IncNow September 13, 2021
filing cabinet

Many companies are LLCs. While the abbreviation can be spotted at the end of many company names, it’s understandable that you might not be entirely clear on what, exactly, an LLC is and its purpose. Each state has its own unique statutory law that sets forth requirements to form a Limited Liability Company (hereinafter “LLC” […]

Continue Reading

INCNOW NAMED 2021 “BEST FOR THE WORLD” IN GOVERNANCE

By IncNow August 5, 2021
bfw2021

IncNow is proud to have been given the 2021 ‘Best for the World’™ award in governance from B Lab, a company that certifies businesses that have achieved the highest standards of environmental and social responsibility. The honor recognizes IncNow’s commitment to ethical business practices, accountability, transparency and overall mission.  The Best for the World list […]

Continue Reading

4 Benefits of Becoming a Sustainable Business

By IncNow July 14, 2021

In today’s corporate climate, sustainability has advanced past the point of simply being a trend. Most successful companies have adopted aspects of sustainability whether it be in their corporate governance structures, operations management procedures, or both. Data supporting the long-term business benefits associated with sustainable business practices has bolstered the growing popularity of sustainability amongst […]

Continue Reading

How does a Delaware Series LLC File Beneficial Ownership Information Under the Corporate Transparency Act?

By IncNow June 25, 2021
Corporate Transparency Act

In April 2021, the Financial Crimes Enforcement Network (FinCEN) issued an Advance Notice of Proposed Rulemaking to solicit public comment on a wide range of questions related to the implementation of the beneficial ownership information reporting provisions of the Corporate Transparency Act (CTA). IncNow® provided four responses. The first response advocates why the protected series […]

Continue Reading

Delaware’s Secretary of State Shines During the Pandemic

By IncNow June 24, 2021
good standing

The Delaware Secretary of State runs the Division of Corporations with more than 1,000,000 active business entities registered in Delaware, including 66% of Fortune 500 companies.  Entrepreneurs know Delaware for having an efficient and business-friendly state government which promotes the seamless formation and maintenance of corporations and LLCs. This is due to the leadership of […]

Continue Reading

How to File a Delaware Annual Report

By IncNow May 28, 2021
franchise tax payment

Filing the Delaware annual report online only takes five minutes. Avoid the $125 penalty, plus interest and keep your corporation in good standing by filing your Delaware annual report on-time. What Is the Delaware Annual Report? The Delaware Annual Report is a set of business information that must be submitted to the Division of Corporations […]

Continue Reading

What is a Delaware Registered Agent?

By IncNow May 7, 2021
registered agent

United States business formation law is state specific. Within the footprint of the state, companies formed in that state need to maintain an “agent” at all times. This agent has to have a fixed office address on record with the company’s file. That makes this office the “registered office” and the business or individual servicing […]

Continue Reading

How to Handle LLC Capital Contributions and Distributions

By IncNow
LLC capital contributions

Members of an LLC are subject to capital contributions and profit distributions based on terms they agree to in the Operating Agreement. Below we talk through several key issues for you to consider as you receive and distribute capital for your LLC. What is a capital contribution? A capital contribution is the cash or property […]

Continue Reading

Should I Set Up an LLC Holding Company?

By IncNow
holding company

How you can protect your businesses from the liabilities of your other businesses Does a D.B.A. offer you any legal protection? Are there alternatives to setting up a separate LLC for each business or property? If you have multiple LLCs, it’s only natural to wonder if you should set up an LLC holding company. In order to determine […]

Continue Reading