Posts

Choice of Entity Question for Professional Service Providers in Virginia: Professional Limited Liability Company v. Limited Liability Company
January 11, 2021

The limited liability company (“LLC”) has emerged as the entity of choice throughout the small business community over the past 25 years. However, for many professional service providers, Virginia offers another, yet confusingly similar,…

Time for a Small Business Compliance Check Up?
June 05, 2020

When was the last time you spent some quality time reviewing the legal and compliance condition of your business? You might be surprised by what you discover. Even if you discover a compliance issue or problem that had been overlooked, much…

Single-Member LLC can be a Good Choice of Business Entity
May 04, 2020

Most entrepreneurs and real estate developers/investors now acknowledge that the limited liability company (“LLC”) has become the entity of choice for many business and investment purposes. Offering the dual advantages of limited liability…

Notifying the IRS of a Business Name Change
April 06, 2020

Every business has a name, and sometimes, for various reasons ranging from a rebranding campaign to a change in ownership, the name changes. If the business operates through a legal entity, such as a Virginia LLC, then an it changes its name…

A Quick Primer on Phantom Equity for Small Business
February 07, 2020

Incentivizing and retaining key employees should be a priority for small business owners. Many owners are understandably reluctant to give away equity, thereby turning a key employee into a business partner, but there are many attractive alternatives…

Does an LLC Pay Income Taxes?
December 20, 2019

In most cases, no, at least not directly. One of the advantages of LLCs is a concept called pass-through taxation. This means the LLC itself does not pay federal income tax, its owners do. Income, profits, deductions and losses “pass through”…

Common Mistakes Small Business Owners Make When They Take the DIY Approach
November 25, 2019

Ever hear someone say, “it is much more expensive to clean up a mess than to do it right the first time around”? Well, it is usually true. Every so often a new client reaches out for help after they have tried to set up a new business entity…

Virginia LLC vs S Corp? How About BOTH!
October 30, 2019

A commonly asked question by entrepreneurs and prospective small business owners during initial brainstorming sessions is “Should I go with an LLC or an S corp.?” Well, for many Virginia small businesses, the optimal answer is BOTH. You…

Say Goodbye to the “Tax Matters Partner” and Hello to the “Partnership Representative”
October 02, 2019

There have been a series of changes over the past year in the Treasury Regulations that likely impact your old LLC Operating Agreement. One change is that there is no longer a “tax matters partner” (also referred to as a tax matters member)…