• What is a single member disregarded LLC?

    ADVERTISING By:  Tamara B. Pow, Esq. If an LLC has two or more members, it is treated as a partnership for tax purposes unless it elects to be treated as a corporation.  However, an LLC with only one member cannot be a partnership, so it will be treated as a disregarded entity, like a sole […]

  • How is an LLC formed?

    By: Tamara B. Pow, Esq. A California limited liability company (LLC) is formed by filing Articles of Organization (also known as Form LLC-1) with the California Secretary of State. A foreign business entity files a similar form (Form LLC-5) to register to do business in California. Although this can be done by mail, that could […]

  • If I form an LLC, do I still need insurance? And if I have insurance, why do I need an LLC?

    By: Tamara B. Pow, Esq. Whether or not you form an LLC (limited liability company), insurance is always the first line of defense.  Although an LLC may protect your personal assets from liabilities of the business (subject to some exceptions – see my earlier blog on protecting your personal assets by forming an LLC), you […]

  • If I form an LLC, will my personal assets be protected from liabilities?

    By: Tamara B. Pow, Esq. The next blog in my series on FAQs for LLCs focuses on personal assets. If you form an LLC, are your personal assets protected from liabilities? Simply because you form an LLC (limited liability company) does not mean your personal assets are safe from any liabilities. First, the protection would […]

  • Now that I have an LLC, what formalities are required to maintain it?

    By: Tamara B. Pow, Esq. As discussed in my last blog, many business owners are looking at forming LLCs as a result of the new tax act. In addition to any potential tax breaks, there are some other advantages to forming a limited liability company instead of a corporation. One of the main benefits of […]

  • Which types of businesses can be LLCs?

    By: Tamara B. Pow, Esq. Just when I thought everything that could be said had been said about limited liability companies, the 2017 Tax Cuts and Jobs Act (“Tax Act”) was enacted and has resulted in a huge increase in meeting requests from business owners and real estate investors who have heard that forming an […]

  • If I form an LLC in another state, when do I need to register it in California?

    ADVERTISING By:  Tamara B. Pow, Esq. When I first started practicing law, it was not uncommon to advise a client to form an LLC in another state in order to avoid California franchise taxes.  This was especially true if the business did not own property in California.  Over the years, the Franchise Tax Board realized […]

  • A Last-Minute Word to the Wise for Soon-to-be Corporations and LLCs in CA

    As we get closer to the end of the year, there are a couple of extremely important tax-related items to remember for anyone who may be getting close to starting a corporation or LLC, preparing to file their Articles of Incorporation, looking to expand their operations into California, or just may be thinking of doing […]

  • Reverse Veil Piercing: Another Reason to Pay Your Bills

    By: Tamara B. Pow, Esq . A recent California Court of Appeals case ( Curci Investments, LLC v. Baldwin ) means California LLC assets could be at risk for a member’s personal liability. Baldwin borrowed $5.5 million from an investment firm, as a predecessor to Curci Investments Inc. (“Curci”). Fast forward three years to the […]

  • Online Filing Available for LLC Statements of Information

    The California Secretary of State has recently updated their process for filing Statements of Information for Limited Liability Companies. Statements of Information can now be filed online using the following link. https://llcbizfile.sos.ca.gov/ The Secretary of State has been processing Statements of Information online for corporations for several years now. Please note that you will need […]