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Sea Glass Jewelry Inspired by Nature, Hand Made by Me and other favorite other things
Limited Liability Company (LLC)
The LLC is a relatively new type of hybrid business structure that is now permissible in most states. It is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Formation is more complex and formal than that of a general partnership.
LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation
The owners are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single member” LLCs, those having only one owner. The duration of the LLC is usually determined when the organization papers are filed. The time limit can be continued, if desired, by a vote of the members at the time of expiration. LLCs must not have more than two of the four characteristics that define corporations: Limited liability to the extent of assets, continuity of life, centralization of management, and free transferability of ownership interests.
Federal Tax Forms for LLC
For additional information on the kinds of tax returns to file, how to handle employment taxes and possible pitfalls, refer to Publication 3402, Tax Issues for Limited Liability Companies (PDF).
Actually, a lot of people are! The success of this site and the Sneak Attack is are thanks to a lot of different people who are happy to help make someone's day! Michael Phipps originated the Sneak Attack idea. He ties everything together and maintains the site.
Michael is an artist by profession. As part of that he sells artistic t-shirts on his site ScatterbrainTees.com and his Etsy shop PhippsArt. His art blog can be found at http://michaelphipps.blogspot.com/. See his illustration work at http://www.michaelphipps.net
Well today I had to try it for myself-what a lot of fun. This afternoon we "attacked this shop HappyElephantDesigns! This is what I got!
On Friday morning Natasha posts a new challenge on her blog:
http://thursdaysweettreat.blogspot.com
Last Friday she posted the challenge I'm dreaming in color. We are to come up with a new interpretation piece by Wednesday! This was my first time in this challenge-but it won't be my last-it was lot's of fun to challenge yourself-and I can't wait to see what other artisans came up with!
When I read the theme this week I let my mind wander-The song “Twilight Time” came into my head.
Heavenly shades of night are falling, it's twilight time
Out of the mist your voice is calling, 'tis twilight time
when purple-colored curtains mark the end of day
I'll hear you, my dear, at twilight time.
I went thru my beads and found the most delicious shades of blues and purple fresh water pearls-deep, rich colors and mixed them with iolite and amethyst beads, iridescent fresh water pearl spears and these funky round coin beads I had found in my favorite bead store. I combined them into a triple strand necklace that explodes into the colors of “twilight time.”
I hope you like it too! Please take a look at all the other artisans at: http://thursdaysweettreat.blogspot.com
Corporations
Corporations are the most formal way of conducting business. A corporation chartered by the state in which it is headquartered is considered by law to be a unique entity, separate and apart from those who own it. A corporation can be taxed, it can be sued, and it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes. The two most common types of coporations are "C" and "S" corporations. A major difference is how they are taxed.
A "C" corporation pays a corporate income tax and the owners also pay their personal taxes on salaries and dividends. An "S" corporation does not pay corporate income tax; instead, all profits are allocated to the stockholders and are taxed at each stockholder's personal tax rate whether or not cash is paid out as salary.
Many small businesses consider creating a corporation to protect personal assets such as home, cars, etc. from the courts in the event of bankruptcy or a jury awards a settlement more than the limits of your insurance.
We'll look at "S" Corporations and "LLC's" in the future!
Remember, as always, I advise you to consult with a qualified accountant or lawyer to give you the best advice for your situation!
Advantages of a Corporation
Disadvantages of a Corporation
Disadvantages of a Sole Proprietorship:
Federal Tax Forms for Sole Proprietorship (only a partial list and some may not apply):
Form 1040: Individual Income Tax Return Schedule C: Profit or Loss from Business (or Schedule C-EZ) Schedule SE: Self-Employment Tax Form 1040-ES: Estimated Tax for Individuals Form 4562: Depreciation and Amortization Form 8829: Expenses for Business Use of your Home Employment Tax Forms