What is a Capital Contribution? A capital contribution refers to the cash or property that owners provide to their business. LLC members typically make initial capital contributions when opening the business and may contribute more throughout the company’s lifetime. Initial capital contributions often play a significant role in determining a member’s ownership percentage in an […]
Continue Reading What Is An LLC Membership Certificate? LLC membership certificates look like stock certificates issued by a corporation, however, they do not function in the same way. The certificate lists the name of an LLC member and details their ownership interest in the company. The law does not require LLCs to issue membership certificates. This is […]
Continue Reading What Does “Good Standing” Mean? Being in “good standing” means your company meets all its legal requirements in the state where it was set up. Generally, a company is in good standing if it has paid its state taxes and doesn’t owe any bills. Some states require corporations to also file an Annual Report […]
Continue Reading Why Do You Need an LLC? Forming a Limited Liability Company (LLC) provides immediate benefits and long-term protection, making it one of the most popular business structures in the U.S. From the start, an LLC can offer potential tax flexibility, increased credibility, and the ability to present yourself as a founder or CEO of a […]
Continue Reading What Is A Holding Company, Exactly? A holding company, also called a “parent company,” is a business entity used for the sole purpose of owning and managing other companies. The point of a holding company is to keep valuable company assets legally separated from daily business activities. Holding companies typically do not have any business […]
Continue Reading LLC Members: Who Owns an LLC? The ownership of an LLC lies with its Members, who share the ownership interest in the company. The LLC Operating Agreement acts as a contract between LLC Members, outlining the rules and responsibilities for running the company. This agreement covers several crucial aspects that define the Members’ roles and […]
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