Showing posts from June, 2005

Should spouse be owner of LLC?

Question: Business Law: Sole Proprietorship. My husband started his own construction/handyman business 3 years ago. It's an LLC and only his name is listed. He originally did not add my name to the business because he just didn't think to do it. Should he add my name to the business? Why or why not?Thank you for your assistance.Reply: answer is ABSOLUTELY CLEAR. You do NOT want to be a member. The idea of the LLC is to insulate the family assets from business liabilities. Even if a creditor or the government can successfully attack your husband, your assets would be protected. As a member of the LLC you would have potential liability for Sales and Use Tax, State and Federal Employment Taxes and NJ Disability and Unemployment contributions.
If you would like further information on the tax and legal issue, there is free information on my website http://www.taxesq.comI hope this helps!

Your Email Is Open to the Public!

An Internet service provider must hand over documents that disclose the identity of a person who sent an allegedly libelous e-mail about an executive director to the company's board, a Manhattan judge has ruled, finding that the First Amendment does not preclude discovery. The Public Relations Society of America and its director initiated an action against Road Runner High Speed Online, seeking all documents concerning the e-mail and the user of the originating Internet address. For the full article click here.

IncorporationShould an independent software consultant (independent contractor) incorporate himself?

Question: IncorporationShould an independent software consultant (independent contractor) incorporate himself?Reply:Probably not. The better choice in most states would be to set-up a Limited Liability Company. This is a disregarded entity for Federal tax purposes. The LLC "member" would simply file a Schedule C as part of the 1040 rather than an 1120 Corporate Income Tax Return. Please see my web site for more information on the best legal choice of entity.