Help Guides and Resources | Page 5

Why is there a charge on my statement?

You have a charge on your statement because you, or someone you know, purchased a legal document from our site. This could be a one-time charge for access to a document or a recurring charge for our monthly subscription....

Can active members in an LLC receive a W-2?

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...

What are articles of incorporation?

Articles of incorporation must be filed with the appropriate state division, typically the Secretary of State’s Office. Doing so will give the nonprofit corporate status and all the rights and privileges that come with it. At a minimum, you will need to have the following information available when completing the articles of incorporation: The name...

When can nonprofits start soliciting donations?

Nonprofits in all but 10 states are required to register with the appropriate state division prior to soliciting donations in that state. The states that do not require registration as of 2016 are Delaware, Idaho, Indiana, Iowa, Montana, Nebraska, South Dakota, Texas (except for certain law enforcement, public safety, and veteran causes), Vermont, a...

How do nonprofits gain tax-exempt status?

To qualify under section 501(c)(3) of the IRC, nonprofits must file Form 1023 with the IRS within 27 months of having their articles of incorporation approved by the state. However, after the articles of incorporation are approved, but before filing Form 1023, it is necessary to take care of a few other preliminary matters. For instance, you may nee...

Who can qualify for Chapter 7 bankruptcy?

As of 2005, debtors must pass the "means" test in order to qualify for Chapter 7 bankruptcy. The "means" test is used to determine whether your income is low enough relative to your necessary expenses to qualify for Chapter 7 bankruptcy. The test is a specific formula designed to prevent high-income earners from taking advantage of the system. The i...

What types of businesses require boards?

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....

How do I form an LLC?

Once an LLC has filed its certificate of formation, it should also complete the LLC operating agreement. Although the operating agreement is not compulsory under the law, it is essential for protecting limited liability status, preventing disputes among members, and ensuring that the company follows legal formalities. Without an LLC operating agreem...

What is a partnership?

A general partnership is created when two or more people decide to carry on a business together. A partnership usually operates in accordance with a partnership agreement. A general partnership agreement is a legal document defining how the business will operate. The agreement helps partners delineate how they will make decisions and what role each...

In which state should I incorporate?

When deciding in which state to incorporate, it is necessary to consider many different factors. The ultimate choice will depend on the particulars of your business’s situation and needs. First, you will need to become familiar with the relevant business laws in the state where your business is physically located. Incorporating in your home state ma...