3 Steps to Starting Your Dental Hygienist Professional Corporation
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by Sam Mollaei
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If you’re a registered dental hygienist, you SHOULD form a Professional Corporation taxed as an S-Corporation and cannot open as a traditional LLC.
California law prohibits registered dental hygienists from forming an LLCs or a traditional general corporations for their dental hygiene business. Instead, you must register as a Professional Corporation.
If done incorrectly, your Professional Corporation can be rejected by the Secretary of State, leaving you vulnerable to potential lawsuits and fines from various government agencies. You may even face discipline from the Dental Hygiene Board of California or the Dental Hygiene Committee of California.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Corporation and I can definitely help you start yours.
If you’re a registered nurse looking to start your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What is a Professional Registered Dental Hygienist In Alternative Practice Corporation
A Professional Registered Dental Hygienist In Alternative Practice Corporation is a professional corporation which is registered with the California Secretary of State and the Dental Hygiene Committee of California.
In California, all professional corporations must be registered with the corresponding governmental agency that is tasked to manage their profession.
California Professional Registered Dental Hygienist Corporation must hold a certificate of registration from the Dental Hygiene Committee of California.
3 Steps to Starting a Professional Registered Dental Hygienist In Alternative Practice Corporation
The 3 steps to starting a Professional Registered Dental Hygienist In Alternative Practice Corporation are:
- File the Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation
- Notify your Profession’s state agency that manages your profession, hold a Board of Director’s Meeting and appoint directors, get your Professional Corporation Bylaws drafted, apply for your EIN, file your Statement of Information, file Form 2553 for S-Corporation tax election, pay California corporate taxes to the California Franchise Tax Board, register with the EDD if you will be hiring employees, and apply for local business registration and licenses.
- Do all the steps above yourself or hire a Business Lawyer to do everything for you.
If you’re a lawyer looking to form your Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
Benefits Of Starting A Professional Registered Dental Hygienist In Alternative Practice Corporation
Incorporating a Professional Registered Dental Hygienist In Alternative Practice Corporation in California will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, allow you to build corporate business credit, and much more.
Name Requirements For A Professional Registered Dental Hygienist In Alternative Practice Corporation
The Professional Registered Dental Hygienist In Alternative Practice Corporation’s name must include “dental hygiene group,” “dental hygiene practice” or “dental hygiene office,” and (2) contains the family name of one or more of the past present or prospective associates, partners, shareholder, or members of the group.
Also, “LLC” is not permitted as a corporate designation, and California does not certify an “LLC” for the purposes of practicing dental hygiene, based on underlying Corporate Code concerning Professional Corporations.
Who Can Be A Shareholder Of The Professional Registered Dental Hygienist In Alternative Practice Corporation?
At least 51 percent of the shares must be owned by the Registered Dental Hygienist. The remaining 49 percent may be owned by Registered dental assistants, Licensed dentists, Registered dental hygienists, and Registered dental hygienists in extended functions. The number of licensed persons cannot exceed the number of Registered Dental Hygienists.
Any shares issued to others who do not are not the professionals listed above are void.
Also, shares in the Professional Registered Dental Hygienist In Alternative Practice Corporation may only be transferred to those who are licensed to practice dental hygiene, to a shareholder of the corporation or to the Professional Registered Dental Hygienist In Alternative Practice Corporation itself.
If a shareholder becomes ineligible to practice dental hygiene in California or is legally disqualified from rendering professional services to the Professional Registered Dental Hygienist In Alternative Practice Corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
Can A Registered Dental Hygienist In Alternative Practice Corporation Be Opened As An LLC In California?
A Registered Dental Hygienist In Alternative Practice Corporation cannot be opened as an LLC in California.
The California Corporations Code does not certify LLCs (Limited Liability Companies) for the purpose of practicing Dental Hygienist In Alternative Practice. For a dental hygienist to provide professional services in California, they must open a Professional Corporation.
Can A Professional Registered Dental Hygienist In Alternative Practice Corporation Use a DBA Or Fictitious Name?
In California, a Professional Registered Dental Hygienist In Alternative Practice Corporation can use a fictitious name so long as they file a fictitious business name statement within 40 days of starting the Professional Registered Dental Hygienist In Alternative Practice Corporation.
You must also make a fictitious name filing in every local county recorder’s office for which you are practicing.
Also, Professional Registered Dental Hygienist In Alternative Practice Corporations may use fictitious business names, so long as such names are not false, misleading or deceptive.
The application can be found here: https://www.dhcc.ca.gov/formspubs/app_rdh_fictitious.pdf
How To Start a Professional Registered Dental Hygienist In Alternative Practice Corporation in California
Here are the 9 steps you must take to form the Professional Registered Dental Hygienist In Alternative Practice Corporation:
- File the Articles of Incorporation with Secretary of State and pay the filing fee. The filing fee is currently $100. You must also state within its Articles of Incorporation that its purpose is “Dental Hygiene”.
- Conduct a corporate meeting where you will issue shares and elect officials and directors for the Professional Nursing Corporation
- Create custom Professional Registered Dental Hygienist In Alternative Practice Corporation bylaws
- Apply for an EIN
- File the Statement of Information with the Secretary of State
- File Form 2553 for S-Corporation Tax Election for the Professional Registered Dental Hygienist In Alternative Practice Corporation
- Pay California Corporate Taxes and Fees to the California Franchise Tax
- Register with the EDD if you will be hiring employees
- Apply for local business registration and licenses
If you’re interested in forming your California Professional Corporation, email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your Professional Corporation can cause your corporation to be rejected by the Secretary of State, costing you money and time.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Registered Dental Hygienist In Alternative Practice Corporation and I can definitely help you with yours.
Looking to form your Professional Corporation?
Email me at sam@mollaeilaw.com or talk to me directly at 818-925-0002
How to Start Your Accounting Professional Corporation in California (2025)
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If you’re a Certified Public Accountant (CPA) in California, you SHOULD form an Accounting Professional Corporation in California taxed as an S-Corporation.
If done incorrectly, your Accounting Professional Corporation in California can be rejected by the Secretary of State, leaving you vulnerable to potential lawsuits and fines from various government agencies, and even the California Board of Accountancy.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their Professional Corporation and I can definitely help you start yours.
If you’re an accountant looking to start your Professional Corporation, book a FREE call here or email me at sam@mollaeilaw.com
How To Form An Accounting Professional Corporation in California
Here are the 9 steps you must take to form the an Accounting Professional Corporation in California
- File the Professional Articles of Incorporation of a Professional Corporation with the Secretary of State to form the Professional Corporation. You must also state within its Articles of Incorporation that its purpose is “accounting”
- Create custom Accountancy Corporation bylaws
- Apply for an EIN
- File the Statement of Information with the Secretary of State
- File Form 2553 for S-Corporation Tax Election for the Professional Accountancy Corporation
- Pay California Corporate Taxes and Fees to the California Franchise Tax
- Register with the EDD if you will be hiring employees
- Apply for local business registration and licenses
- Do all the steps above yourself or hire a Business Lawyer to do everything for you.
If you’re an accountant looking to start your Professional Corporation, book a FREE call here or email me at sam@mollaeilaw.com
What Is A Professional Accountancy Corporation?
A Professional Accountancy Corporation is a professional corporation which is registered with the California Board of Accountancy (CBA), to provide accounting services.
An accountancy corporation wishing to practice accountancy in California is required to be approved for license by the California Board of Accountancy (CBA) before practicing or holding out to the public as an accountancy corporation.
California Board of Accountancy License Renewal
An accountancy professional corporation must renew its license every 2 years to retain practice rights. The expiration date is based on the month and year the application was originally approved. The CBA mails renewal forms with instructions approximately two months before the firm’s license expiration date.
Failure to renew within five years of expiration will result in cancellation of a corporation’s license. A cancelled license cannot be renewed, reinstated, or restored.
If a corporation’s license has been cancelled, the shareholder(s) must reapply and be approved for licensure before practicing or holding out to the public as an accountancy corporation.
The application and initial license fees are $270. Your check, money order, or cashier’s check must accompany your application and be made payable to the California Board of Accountancy.
CPA Firm Name Rules California
The professional accountancy corporation’s name cannot be one which is false or misleading.
Also the name of your accountancy corporation in CBA records (and on file with the Secretary of State) is the only name under which it may practice accounting.
Articles of Incorporation must be submitted with the application. The articles must indicate incorporation as a professional accountancy corporation, not a general corporation.
The articles must be endorsed and approved by the California Secretary of State. Additionally, the name on the Articles of Incorporation must match the name on the application submitted for license as an accountancy corporation, as well as on all documentation submitted.
If you’re an accountant looking to start your Professional Corporation, book a FREE call here or email me at sam@mollaeilaw.com
Who Regulates Professional Accountancy Corporations?
According to the California Corporations Code 13401(b), all professional corporations must be registered with the corresponding government agency that is tasked to manage their profession.
California accountancy corporations must be approved for license by the California Board of Accountancy (CBA) before practicing or holding out to the public as an accountancy corporation.
Benefits Of Starting A Professional Accountancy Corporation
There are plenty of benefits of incorporating a professional accountancy corporation in California.
Correctly starting an accountancy corporation in California will limit your personal liability against creditors and lawsuits, minimize the self-employment taxes of the shareholders, allow you to build corporate business credit, and much more.
Can a CPA firm be an LLC in California?
According to Corporate Code Section 17375, accountants cannot practice accountancy as an LLC and must form a professional corporation, based on underlying Corporate Code concerning Professional Corporations.
If you’re an accountant, you’re prohibited from forming an LLC or a traditional corporation for your practice and instead must register as a Professional Corporation.
Who Can Be A Shareholder Of The Professional Accountancy Corporation?
Each director, shareholder, and officer of the professional accountancy corporation MUST be licensed to practice public accountancy. The director of an accountancy firm must be a licensed shareholder.
Shares of stock in the accountancy corporation may only be issued to people who are licensed to practice accountancy. Any shares shares issued to others who do not practice accounting are void.
A corporation also may have a non-licensee shareholder, vice-president, or secretary (officer).
However, a non-licensee may not be both a shareholder and an officer. A non-licensee cannot be a director of the firm.
Also, shares in the accountancy corporation may only be transferred to those who are licensed to practice accounting, to a shareholder of the corporation or to the professional accountancy corporation itself.
Non-Licensee Owners of California CPA Firm
If a non-licensee is a shareholder, the non-licensee must materially participate in the business of the firm. Non-licensees must comprise a minority of owners.
The only exception is that a firm with two shareholders may have one shareholder who is a non-licensee. At initial licensing and at license renewal, the firm must certify that any non-licensee owner with his or her principal place of business in California has been informed of the rules of professional conduct applicable to accountancy firms.
A declaration is required to be signed by a licensed shareholder of the firm upon application for firm registration.
Out-Of-State Shareholders of Accountancy Professional Corporation
Shareholders of the accountancy corporation or employees of an accountancy corporation wanting to practice in California who live out of state must file an application for license prior to practicing in California.
What Happens If A California Accountant Shareholder Becomes Disqualified From Practicing Accountancy
If a California accountant shareholder becomes ineligible to practice accounting in California or is legally disqualified from rendering professional services to the accountancy corporation, she must sell or transfer her shares to a qualified shareholder within 90 days of her ineligibility or disqualification.
If you’re an accountant looking to start your Professional Corporation, book a FREE call here or email me at sam@mollaeilaw.com
Can A Professional Law Corporation Use a DBA Or Fictitious Name?
In California, A fictitious name can not be issued to an accountancy corporation.
Changing The Name, Address, Or Shareholder Of The Accountancy Corporation
Any time you change the shareholders or the address of the accountancy corporation, you must notify the CBA within 30 days. To change the name of the accountancy corporation, you must submit an accountancy corporation name change form before you can practice with the new name.
Corporations requesting a name change will be required to provide a copy of the amended Articles of Incorporation which have been endorsed and approved by the California Secretary of State.
What To Do Next
While these following these steps above might seem straight forward, one mistake while creating your Professional Corporation can cause your corporation to be rejected by the Secretary of State.
As a Business Lawyer for Professionals, I’ve assisted hundreds of professionals just like you start their California Accountancy Corporations and I can definitely help you with yours.
If you’re an accountant looking to start your Professional Corporation, book a FREE call here or email me at sam@mollaeilaw.com
Can a C Corp Own an S Corp?
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You will find that a C Corp has its advantages as well as an S Corp, all which leads to the question – “Can a C Corp Own an S Corp? The answer to this question is “No.”
However, an S Corp can own a C Corp. So, don’t get things confused. Yes, it is true – S Corps can own C Corps, but, because of the framework of a C Corp, owning an S Corp cannot be done.
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To better understand the nuances between these two entities, you need to see how each is set up. I can also assist you, as well as my legal team, in incorporating your business.
You only need to book a call to speak to us here: https://mollaeilaw.com. That way, you can get more detailed information as to what we can do for you in setting up a business structure that will help you grow and make money.
So, let’s review the differences between the C Corp and S Corp in this article. That way, you can learn why an S Corp can own a C Corp, but you cannot be a C Corp and own an S Corp.
Can a C Corp Own an S Corp in Rare Instances, and, If So, Why Not?
If you want to know, “Can a C Corp Own an S Corp?” the answer it still “No.” This is because a C Corp, simply lacks the flexibility to do so while an S Corp is a light example of the traditional corporate structure.
An S Corp is a subchapter filing of a C Corp, so the rules, with respect to taxation and set-up, are less stringent.
However, that does not mean a C Corp cannot own an LLC (a legal liability company) as a subsidiary. In fact, the choice for this type of ownership can be quite advantageous from a liability standpoint.
If a third-party claim arose, the parent, or C Corp, did not participate in the subsidiary’s operations, it would not be subject to or at risk for the claim.
Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start
Can a C Corp Own an S Corp? Looking at the Structure of Both Entities
To learn why you have to answer “No” to the question, “Can a C Corp Own an S Corp?” you need to review the structures of both entities.
I can help you see the differences and help you make the best choices for setting up your business or any subsidiaries or entities. All you have to do is email sam@mollaeilaw.com anytime 24/7.
A C Corporation is the most common type of corporate entity in the U.S. This type of structure offers unlimited growth through stock sales, and therefore can assist your business attract venture capitalists or wealthy investors. A “C” Corporation can have an unlimited number of shareholders, which makes it even more attractive to any fledgling company hoping to make money.
Benefits that make a C Corporation stand out it is limited liability for directors, shareholders, employees, and officers, and its perpetual existence. Even if an owner dies or leaves his or her position, the corporation will not fold.
Companies that become incorporated receive more respect in the business community, and have more of an opportunity to grow, over time.
While a C Corporation can take on an unlimited number of shareholders, it still must register with the SEC when the number of shareholders reaches 500, or when the business grosses $10,000,000 in assets. This ruling falls under the 1934 Securities Exchange Act.
With respect to taxation, corporations can deduct all business expenses to reduce the tax they owe.
While you will enjoy unlimited growth by incorporating your business as a C Corporation, you still need to be aware of some of the drawbacks. C Companies are subject to double taxation.
Therefore, taxes are assessed at the company level and, again, assessed on shareholder dividends.
It is also expensive to incorporate. You have higher costs when filing Articles of Incorporation. Corporations must also pay fees to the state in which they operate.
Moreover, you cannot deduct corporate losses, as you can with an S Corporation. Corporate losses can be deducted on the personal tax returns of S Corporation shareholders.
Both C Corporations and S Corporations have limited liability protection and both require the filing of Articles of Incorporation. Both entities also have shareholders, directors, officers in their formations. Where they differ is in the complexity of their tax structures.
While C corporations must pay taxes twice as an entity, S corporations enjoy pass-through taxation. Also, S Corps can only limit shareholders to 100 people. They also must be owned by citizens of the U.S.
Can a C Corp Own an S Corp? If C Corps Cannot Own S Corps – Can LLCs or Partnerships Own S Corps?
When answering the question, “Can a C Corp Own an S Corp?” you also have to consider other types of entities. C Corps are not the only business entities that cannot own S Corps. Limited liability companies and partnerships cannot own S Corps either.
As you can see, you need to get some legal guidance when forming any type of business entity. That is where I can help. Just email sam@mollaeilaw.com to the legal guidance you need.
For instance an S Corp. can indeed be a shareholder in a C Corp. However, it cannot be a total shareholder. It cannot own any more than the C Corp.
Therefore, there are legal stipulations that exist, even when you own share, as an S Corp, in a C-incorporated company. However, you do receive tax benefits if you happen to own the C Corporation.
If you wish to set up a traditional C Corp, you will need to choose a unique legal name and register it with the Secretary of State. You also will need to draft Articles of Incorporation and submit them to the Secretary of State.
Stock certificates must be issued to the initial shareholder, and you will need to apply for business licenses and certificates that apply to your field or industry.
An SS-4 must be filled out to apply for an Employer Identification Number (EIN). This number will allow you to set up a business bank account and hire employees. You will also need to apply for any other identification numbers, as they apply to your jurisdiction.
In these cases, the ID numbers you will need apply to paying taxes, such as disability, unemployment, or other payroll taxes.
What Happens Next?
Whenever anyone asks, “Can a C Corp own an S Corp?” they are frequently mystified when I tell them the answer is “No.”
However, I can help you see what is and what is not possible when you set up corporate entities. You only need to contact me for a consultation. Email sam@mollaeilaw.com today for further information.
Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start
The Purpose of an LLC (And the Benefits…)
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If you are trying to establish yourself as a start-up, you need to answer the question, “What is the purpose of an LLC?” before you register your business. Doing so will give you the information you need to create a solid foundation for your new business.
An LLC offers a number of advantages for the business owner – benefits that should not be overlooked.
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While it is easy to set up a sole proprietorship, you don’t enjoy the same protection as you do with an LLC. That is because a sole proprietorship leaves you vulnerable, or open to more law suits.
Why?
Because a sole proprietorship is not distinct from what you own personally. If someone sues your business, they can also come after your personal assets. When you file an LLC, you can avoid this from happening.
What Is the Purpose of an LLC for the Small Business Owner?
When you answer the question, “What is the purpose of an LLC?” as a small business owner, you will quickly see the advantages. An LLC benefits a small business proprietor in the following ways:
- An LLC allows a sole proprietor or business owner to enjoy protection from current or future liabilities against their business without the need to incorporate.
- LLCs offer considerable tax benefits, especially if an LLC is established in Wyoming, Delaware, or Nevada.
- If you are a sole business owner, an LLC can be taxed as a sole-proprietorship, as the entity features pass-through taxation. In turn, you can claim profits on your individual tax form at a lower tax rate.
- Business losses pass through to the owner’s individual tax form, thereby offsetting an owner’s non-business income.
As you can see, you can receive pass-through taxation and the allocation of business losses on your personal tax form while enjoying personal liability protection. You don’t have this type of flexibility if you choose to remain a sole proprietor.
My legal team and I can help you with the details of forming an LLC. Book a call to speak to us here: https://mollaeilaw.com.
Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start
What is the Purpose of an LLC for Multiple Business Owners?
Now that you see the benefits of establishing an LLC as a sole business owner, you may want to get the answer to the following question, “What is the purpose of an LLC for multiple business owners?”
The benefits for this type of set-up should also be reviewed at length, as this type of LLC offers a good deal of flexibility. Contact me so you can further explore how you can benefit from this type of business set-up. Email sam@mollaeilaw.com today.
For a business that is a partnership or has more than one owner, an LLC offers several tax advantages, plus the benefit of a establishing a corporate tax strategy. For instance, if LLC members do nothing but allow the LLC entity to stand as it is, the LLC will be taxed as a partnership.
However, you can elect to be taxed as a corporate entity – or as an S corporation or a traditional C corporation. For example, maybe you want to keep your business profits in the corporation.
If so, you should elect to have your LLC taxed as a C corporation.
Under this election, your LLC’s profits are only subject to a 15% tax rate, which is typically lower than the personal and marginal income tax rate. Should any of the members wish to be paid a salary, you can pay them W-2 wages for their work.
Let me show you how you can set up an LLC to increase earning and protect yourself financially. Email sam@mollaeilaw.com today.
On the other hand, LLC members may want to have a bit for flexibility. For instance, if one of the members wishes to take part of the business profits, you should choose to give your LLC S-corporation status.
By using this tax approach, an LLC member can receive a pro rata share of the LLC’s bottom line, with the amount recorded on the member’s individual tax form.
Some of the other advantages of having an LLC taxed as an S corporation include the following:
- The LLC can have more than 75 owners.
- A nonresident of the U.S. can act as the LLC’s owner.
- The owner can assume over 80% ownership in a separate incorporated entity.
- Owners and members can participate in the management of the business.
- A corporation or partnership can serve as the owner.
Given the business climate that small businesses must weather today, it makes good sense to set up a business as an LLC. Therefore, establishing an LLC with one owner as a sole proprietorship, or as an S corporation or C corporation, when there is more than one owner, provides some major tax benefits.
Plus, setting up a small business as an LLC is much easier than incorporation. However, that does not mean you won’t need legal guidance and help. It just means that you can enjoy the benefits accorded to a corporation without the complexities.
Would you like to know more about establishing your business as an LLC? If so, you only need to contact one of the members of my legal team or myself.
Book a call to speak to us here: https://mollaeilaw.com. Learn more how you can set up your business so you can enjoy some operational and tax advantages.
What is the Purpose of an LLC for property investors?
While an LLC is an ideal entity to establish for a small business, you cannot leave out the advantages for people who invest in real estate. Therefore, it helps to know the answer to the following, “What is the purpose of an LLC for property investors?”
In basic terms, the establishment of an LLC for real estate investors makes it possible to invest in real property while enjoying personal liability protection. Therefore, a real estate investor can buy and sell properties as well transact business as an LLC.
By taking this approach, an owner who invests in several properties can protect his or her assets from both personal and business lawsuits. By creating an LLC for each property, a litigant can only go after one property at a time.
As you can see, you have a great deal of flexibility when you choose to establish your business as an LLC. If you want to expand your business and protect yourself against personal liability, an LLC provides you with the means to establish your business goals and dreams.
What Happens Next?
If you are still asking, “What is the purpose of an LLC?” you probably need a more in-depth legal interpretation of the benefits associated with establishing this business entity. Email sam@mollaeilaw.com for more details today, and to set up an appointment for a consultation.
Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start
What is the Best State For LLC?
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Once you find out the ease in which you can set up a business entity, such as an LLC, you will want to find out what is the best state for an LLC. This is especially true if you operate a business that is not U.S.-based, or covers sales, services, or operations that are not locally owned and operated.
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However, if you do most of your business in California or another state, the best state for an LLC is your primary hub. Otherwise, you can explore your options with respect to filing fees, franchise taxes, privacy, and what you end up paying in taxes overall. Learn more about establishing an LLC by contacting me or one of my legal team. Book a call to speak to us here: https://mollaeilaw.com.
What is the Best State for an LLC that is Involved in Real Estate Investments?
If you want to determine what is the best state for an LLC that is a real estate investment company, you will discover that most investors like Delaware. Naturally, as with any business formation, you have your choice of states, including your home state.
Because you have to pay taxes to the state where you live or operate a business, it just makes sense, sometimes, to base your LLC there. However, states, such as Delaware, Nevada, and Wyoming also provide additional benefits that are hard to ignore.
There is a reason that businesses like to incorporate or base their LLC in Delaware. What makes Delaware especially company-friendly is its Court of Chancery. The state’s chancellors, not judges or juries, rule on corporate legal cases. This is why over two-thirds of Fortune 500 companies choose to establish themselves in Delaware.
If you are an LLC, you can file privately if you choose to establish your business in Delaware. Therefore, the names of the LLC owners are not up to public scrutiny, nor part of the public record.
This enables a real estate investor to separate themselves from their operations. I can also help you decide on the best approach to establishing an LLC. Email sam@mollaeilaw.com anytime.
In most cases, an LLC is a better solution for real estate investors than incorporation. While some real estate investors may elect to incorporate, as it enables them to sell equity in a company, LLCs are still better choices.
Plus, the set-up is fast and easy. Moreover, an LLC protects a real estate investor from personal liability. Delaware is also appealing, as the state only charges one flat tax annually. The tax is the same for all LLCs, regardless of the revenue the company generates.
Let’s say you have an investment property in Florida. While you could just choose to base your LLC in Florida, you select Delaware instead. That is because you enjoy more privacy and an extra layer of protection that a Florida LLC does not provide.
Therefore, you would have to get a Foreign Qualification in Florida to operate a Delaware LLC. In addition to the tax owed to Delaware, you would also have to pay an application fee and a yearly tax to Florida.
In fact, some real estate investors like the peace of mind that a Delaware LLC provides so well that they form several LLCs, or one LLC for each property they own. That way, anyone filing suit cannot touch the other investments. I can also help you formulate the best strategy for setting up an LLC for an investment property. Email sam@mollaeilaw.com today.
Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start
What is the Best State for an LLC that Operates as an Online Business?
When you ask, “What is the best state for an LLC that operate an online business?” you have 3 options that will provide you with a number of benefits. The most popular option in this respect is the state of Wyoming.
LLC owners like Wyoming as the state does not require that they pay business income taxes or a franchise tax – a big savings for anyone beginning an online company.
Delaware is yet another popular choice to form an LLC, as the state does not levy taxes on income that is produced out-of-state. Therefore, even if your company does not do much business in Delaware, it won’t affect your taxation.
In addition, Delaware waives the filing fees for LLCs and the franchise costs are low. The state’s Chancery Court system enables businesses to settle disputes quickly and privately.
One other “best state” for an LLC is Nevada, as the state does not impose taxes on a company’s capital gains or income. In addition, Nevada does not have franchise taxes.
Moreover, LLCs find it easy to comply with the law in Nevada, as the state does not require that companies create operating agreements or hold annual meetings. Online entrepreneurs also like the fact that Nevada does not share LLC information with the IRS – a measure that allows businesses to remain anonymous.
What is the Best State for an LLC Owner Who Wishes to Pay Lower Taxes?
When it comes to taxation, you may wonder what is the best state for an LLC owner to select. In this case, the hands-down favorite is Wyoming. The state boasts the lowest tax rates in the nation and also a low filing fee.
For example, the state’s corporate tax and income tax rates are 0%. The sales tax rate is 4% while the average property tax rate stands at .61%. Compare that to the natural average of 1.19%.
Moreover, Wyoming-based LLCs that operate out the state can keep their workers employed. The unemployment tax rate, as of 2021, is only 4%.
Given that Wyoming does not require businesses and owners to pay corporate or individual income taxes and boasts a lower sales tax rate, it ranks high as a popular state for LLC businesses.
What Happens Next?
If you are still trying to decide what is the best state for an LLC, contact me for a consultation. I can give you the legal direction you need to make a prudent decision. Email sam@mollaeilaw.com to set up an appointment for a consultation today.
Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start
How Much Does a Business License Cost
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You will require a business license to operate as a small business if you wish to get legal permission to operate as a business on the federal, state, or local level. If you want to know, “How much does a business license cost?” be prepared to spend a couple hundred dollars, including renewal fees.
How Much Does a Business License Cost and What is the Process?
If you are new to the world of business and commerce and want to know exactly, “How much does a business license cost?” or need to know about required permits, you first need to define exactly how a business license is used and its purpose.
Basically, a business license represents your company and allows you to operate within your locale. Most, if not all, small businesses must acquire licenses before providing services or goods. A local business license benefits an area with respect to collecting revenue, regulating companies, and establishing zoning laws and regulations.
Therefore, when you establish a business, you need to check with a competent business lawyer to see what business licenses apply to your company. Allow him or her to guide you so you get a better idea of how much a business license or business-related permits cost.
How Much Does a Business License Cost, Such as a DBA?
If you want to know, “how much does a business license cost, such as a DBA?” you should consult with a business attorney. If you run your business under a different name than the legal registration for your company name, you should obtain a DBA name.
This name is also known as a fictitious name, trade name, or an assumed name. The requirements for getting a DBA differ by locale.
Even if you don’t need to register a DBA, you might want to do so anyway. A DBA gives you more flexibility, as you can open a business bank account with the name as long as you get a business Employer Identification Number or EIN. Email sam@mollaeilaw.com for further details.
According to the Small Business Administration (SBA) several businesses can go by one DBA in each state. Therefore, you are not as restricted in what you can use.
A DBA can also be used to creatively confirm how your business can support the consumer.
For example, you may use the name D. Allen Writing Services for your entity name, but use a DBA, such as Write-It Write Editing for a DBA.
When selecting a name, make sure you don’t step on a competitor’s toes, as you can get into trouble with trademark infringement. Find out more about DBA requirements by visiting local government websites or offices.
Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start
Besides Learning, “How Much Does a Business License Cost?” You Also Need to Check on Zoning
While you have to answer the question, “How much does a business license cost?” you still need to review your local city’s zoning requirements. Each municipality has established regulations for specific businesses as to where they can operate.
Are you operating in a place that is zoned for your type of company? If you are not meeting this requirement, you will need to apply for a zoning variance. Doing so proves that you will operate quietly and without disruption.
How Much Does a Business License Cost When You Work Out of the Home?
If you want to know, “How much does a business license cost if you work out of the home?” you will need to acquire a home occupation permit. This permit normally costs from around $100 to $150, depending on where you live.
When you obtain this type of permit, it shows that your home business will not add traffic and noise to the community.
Any home occupation by a business should be apparently incidental, or secondary to the main use of a home as a residence. Anything having to do with the business should be stored inside and not appear on the exterior of a home as well.
You also cannot place illuminated signage in your yard. Typically, you can only display one sign that meets specific size requirements.
Also, you can only employ one employee from the outside. In addition, most home occupation permits require that the space occupied by your business cannot take up any more than 25% of the total floor space.
You cannot add a display window or salesroom either. Also, you may need to check with the city of your home business about special requirements, especially if you use an accessory building or an outside storage area at your residence.
Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start
How Much Does a Business License Cost that Is Related to Taxes?
One of the essential parts of running a business is answering the question, “How much does a business license cost that is related to taxes?” You will need to obtain an Employer Identification Number (EIN), so you can collect payroll taxes and hire employees.
You should also obtain a sales tax license or permit to sell goods or, in some instances, services.
How Much Does a Business License Cost Generally?
All the aforementioned information may lead you to ask, “How much does a business license cost generally?” What you pay, generally, can range from $50 to several hundred dollars, including renewal fees.
The total cost can be narrowed down to several key factors, such as the type of license, your location, recurring fees, or processing fees.
Moreover, some states have general requirements for business licenses. For instance, the cost of obtaining a state business license in the state of Nevada is about $500 annually. Plus, you have to add in costs, such as the fee assessed for filing an annual list of directors and officers.
Business licenses can come in various “shapes and sizes.” You have licenses that cover healthcare companies and licenses that ensure that a business meets environmental requirements.
Other costs involve permits for signs or industry-specific licenses. Let me help you sift through the legal requirements for licensing your business. Contact me or one of my legal team members today. Book a call to speak to us here: https://mollaeilaw.com.
So, what are some of the common licenses required by businesses?
Some of the regular licenses that businesses require to operate include operating licenses, DBA licenses, home occupation permits, zoning permits, tax licenses, sign permits, environmental licenses, health licenses, and industry-specific licenses.
What Happens Next?
I can help you get the licenses and permits you need for your business. So, if you need legal assistance, contact me to ensure you get the licenses you need. Email sam@mollaeilaw.com today.
Email sam@mollaeilaw.com or to book a call to speak to us here: https://mollaeilaw.com/start
