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A "capital contribution" is a contribution of money (cash), property (assets), services, or a promise to contribute one of the aforementioned in the future to a business in exchange for an equity ownership interest.  Each business owner (a member or partner) has a "capital account" which is a line item...

In order to obtain an EIN with the Internal Revenue Service you must elect a "responsible party".   This is one of the individuals who controls, manages or directs the entity.  It must be a real person, not another entity and the filing will include their individual Taxpayer Identification Number (SSN,...

An EIN is an Employer Identification Number obtained with the IRS for business purposes.  Despite it's name you may need or want to  obtain an EIN even if you do not have employees.  Think of it like a social security number for your business that can assist you in keeping your...

A registered agent (also known as a resident agent in Massachusetts) is required for all registered businesses (like an LLC or corporation) to accept service of process on behalf of the business and receive communication from the state.  Service of process is when a party initiates a lawsuit and provides...

When forming a limited liability company (LLC) you need to determine if you wish to be Member-Managed or Manager-Managed.  In Massachusetts this election is made by including the name of a Manager on the Certificate of Organization and in the Operating Agreement (this is the contract between Members and the...

Everyone knows Black Friday, and the chaos that ensues with massive chain stores and companies offering great deals on their products, and often times in limited quantities.  Cyber Monday has become a newer “holiday” where online retailers offer similarly attractive sales, coming the Monday after Thanksgiving.  Lesser known, but possibly...

As a veteran, you are entitled to various benefits to help jump start your business idea, or to help your current business grow and prosper.  Luckily, there are many options and programs available to veterans, whether it’s training programs for how to start a business, or specific loan programs with...

When forming a legal structure and comparing an LLC to a corporation, a common conversation is regarding requisite corporate compliance.  That is the statutory obligations that we can’t contractually avoid.  For example, the requirement that a corporation hold at least an annual meeting to elect the board of directors and...

The most common times we are initially contacted by potential clients is either at the formation stage or in response to an unforeseen ailment.  The later situations cannot always be avoided, but there are a few things we can do to identify early and intervene, or completely circumvent.  This week...

There are three possible federal tax classifications for U.S. business entities: Disregarded Entity; Corporation; or Partnership Depending on the legal structure of your business you may have an option to elect your tax classification.  A business entity that is not necessarily classified as a corporation under Reg, 301.7701-2(b) can elect...