Whether you know what a registered agent is or not, it is possible that you have been told that you need one. Every state requires corporations and LLCs to have a registered agent for a variety of reasons. Understanding the basis for the......

Foreign entity registration is confusing for many people at first. This is because, although the term includes the word "foreign," it does not really have anything to do with conducting business in other countries in this context. Read More...

There are plenty of benefits to creating a separate business entity or corporation to run your business, from privacy to the protection of your assets. There are also additional benefits depending on where you form your corporation; some states are far more business friendly than others. Read More How to ......

Think of corporate bylaws as an internal rulebook for the organization’s key decision-makers. They specify the corporate governance procedures, including how the board of directors and any committee members will be selected, when and how annual meetings will be conducted, and how to deal with conflicts of interest between the company and its decisio...

For multi-member corporations, the question of which structure is best comes down to the needs and priorities of the corporation. Size If a company elects to have an S corp status, then it will be limited to a maximum of 100 shareholders. If a company elects to have a C corp status, then it can have an unlimited number of shareholders. Also, due to...

In general, an active member of an LLC cannot receive what is commonly known as W-2 income. This is due to the fact that an active member is not considered to be an employee of an LLC. The only exception to this is if an LLC has elected, through the IRS, to be treated as a corporation for tax purposes. In the event that an LLC elects to be treated a...

Although federal law does not require specific language in most organizations’ bylaws, some states require that bylaws be filed at the time of incorporation or shortly thereafter. In most states, corporate bylaws are simply approved by the board of directors at the first board meeting. The board approves subsequent amendments of the bylaws according...

A corporation is considered to have separate “legal personality” from the people that own it—the shareholders. This means that a corporation has the ability to enter into and enforce contracts. Additionally, a corporation can also accrue debt and own assets. As a separate legal entity, if any creditors attempt to enforce a debt against a corporation...

In short, no. The main function of voting members is to elect the board of directors. In fact, most companies choose not to use voting members at all, instead opting to only use a board of directors, which is elected at the first corporate meeting. These boards are self-perpetuating in that they elect their own replacement members and additional mem...

As a matter of state law, all S corps and C corps require a board of directors elected by the shareholders. The composition and requirements of a board of directors vary from state to state. LLCs are not under any requirement to elect a board of directors, but may do so if they choose....