What Is an Employer Identification Number? An Employer Identification Number, also known as an EIN, is a 9-digit tax identification number issued by the Internal Revenue Service (IRS). The EIN is the number that goes on tax forms including the 1099 non-employment income and 1065 partnership return to name a couple. You can obtain […]
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Why Freelancers Should Form a Delaware LLC Freelancers should form a Delaware LLC instead of operating a sole proprietorship for several reasons. 1.) Limited Liability Protection. An LLC provides business owners with limited liability protection, which shields their personal assets from any debts or legal liabilities associated with their business. Freelancers in high-risk industries can […]
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How to Close a Delaware LLC: 3 Steps Formally closing a Delaware LLC requires completing the following steps: Step 1.) Members Vote on Cancellation Before proceeding with closing the business, the existing Members must agree to cancel the LLC. Oftentimes the LLC Operating Agreement will include a provision detailing how Members should come to […]
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What Is An LLC (Limited Liability Company)? An LLC, or “Limited Liability Company”, is a type of business structure that provides liability protection for its owners. The laws of the state where the LLC is registered uphold these protections. LLCs create a layer of separation between a business and its owners, who are called […]
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What Is A Delaware C-Corporation, Exactly? The “C” in C-Corp refers to a corporation’s federal tax designation. The IRS designates Delaware Corporations as C-Corps by default. However, a corporation can elect to be taxed as an S-Corporation by filing IRS Form 2553. Many entrepreneurs get confused when trying to incorporate a C-Corp on their […]
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How to Add a Member to a Delaware LLC A Delaware LLC can make membership changes by following three simple steps: Step 1: Vote On Changes Changing membership in a Delaware LLC starts with existing LLC members holding a vote. Existing members must provide unanimous consent before an ownership transfer can be made. LLC […]
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