Legal

The members of an LLC taxed as a partnership cannot take W-2 salaries or wages like employees of the LLC and cannot therefore have their compensation processed through a payroll service. However, they make take salaries in the form of “guaranteed payments” and profit distributions from the LLC as discussed in greater detail below.

Of course, if you own your business, then it is a woman-owned business; however, whether any other minority or women-owned business certification would possibly be of any advantage for your particular business will depend on your target customers, financing requirements, and other factors.

As discussed in the EEOC and other labor industry information below, it is possible to develop acceptable policies and procedures for using criminal background checks in the applicant screening process without violating hiring discrimination regulations. However, due to the general complexities and legal risks, we always recommend that our members consult their business labor lawyers in order identify the federal and state labor laws applicable to their employees and businesses and to develop hiring and other personnel policies and procedures that are legally compliant.

Scholarship programs. There are different approaches to establishing scholarship programs which range from an annual scholarship awarded by a business to a nonprofit foundation that may fund many scholarships. We do not know how much money your business plans to spend on scholarship awards or if you plan to operate a nonprofit organization to raise money for scholarships, but establishing a scholarship program with preferential tax treatment for donations involves the creation of a nonprofit charitable entity.

Generally, trademark protection is available for logos, business names, slogans, and some design elements. When a name, logo or design is being used primarily to distinguish your goods or services from the goods or services of competitors

C corp to S corp conversion: An S corp is a tax status election only, so converting from a C corp to an S corp is a fairly simple process. An S corp is created by forming a subchapter C, or regular, corporation with the state and then electing subchapter S corporation tax status for the corporation by filing Federal Form 2553 with the IRS. A business can also operate for a period of time as a C corp before it elects for S corp tax status.

 Sole proprietor formation: You can review the other basic steps to forming a sole proprietorship in your state through the following government and business resources, which include these considerations…