apportioned among the outstanding shares of stock. A “regular” corporation pays tax on its income as a separate tax-paying entity. S corporation taxable income (loss) is apportioned among its shareholders. Perpetual, unless limited by terms of charter, by-laws, or statute. Business continues its independent legal existence with the deceased stockholder’s shares passing to estate and heirs.
Taxation
An LLC is not a separate, tax- paying entity; it provides pass-through tax treatment to owners.
Period of Life
Perpetual, unless limited by terms of Articles.
Effect of Death of Owner
Business continues its independent legal existence with the deceased owner’s interest passing to estate and heirs.
1.5.2 Apply for a Federal Employer Identification Number (E.I.N.) To apply, submit Form SS-4 to the Internal Revenue Service. This form may be obtained from your local IRS office or you may download it from the Internet, at www.irs.gov . Obtain a business tax kit, containing forms and instructions for meeting federal reporting and tax deposit requirements. To expedite the process, after you've filled out Form SS-4 you may call the national number for the IRS office (800) 829-3676 to find the IRS headquarters in your area. They will ask you for some of the information requested on the form and give you an EIN right over the phone. They will still need Form SS-4 filled out and sent to them. If you are incorporating, your attorney or accountant can apply for you. 1.5.3 Establish a Relationship with a Bank Find a full-service bank with a convenient location and hours for your business account. Develop a relationship with the bank branch manager. The closer the relationship you develop, the better your chances of establishing credibility and obtaining a loan or special considerations as future needs arise. If incorporated, you will need from your attorney: Articles of Incorporation and Resolution with By-laws. From the Secretary of State, you should obtain a certificate of assumed name (or DBA - “Doing Business As”). These items can take some time, therefore, prepare ahead of time, if possible. If set up as an LLC, you will need the title of your company, EIN, and identification for all signors on the account. NOTE: Most owners find it helpful to list their DBA name on their checks rather than the name of their LLC. Some include both . Share your business plan with your banker . It is always important to develop a relationship with your banker. By sharing your business plan and/or financial projections
MOLLY MAID Right Start Manual Copyright 2015, Molly Maid, Inc.
Page 9
Proprietary and Confidential Information
Made with FlippingBook - professional solution for displaying marketing and sales documents online