Call Us: 801-802-9020

LLC Formation

Questionable Deductions

reThis article is written by Ben Rucker, a former special IRS auditor.  The video, of course, is of Lee Phillips. #21 on Lee’s formalities checklist is “Do you have a resolution documenting the business purposes for any questionable deductions?” Large, Unusual, or Questionable deductions (LUQs) on your […]

Read more

Documenting Transactions

#20 on my formalities checklist is: “Have you documented all major transactions of the company business with resolutions, notes, contracts, etc.?”  This is a logical followup to #14, discussed in Give Managers Their Power. You need to resolve to keep your corporate shield in place!  Big companies […]

Read more

Capitalization of a Company

One of the attacks that can be brought against your company and the corporate veil is a claim that your company was underfunded.  That means that your company didn’t have enough money, especially at the beginning of the company, to even begin to meet the needs of […]

Read more

Sign Here, Madame President

It isn’t a matter of ego; it is a matter of notification. Don’t be bashful, sign as PRESIDENT or MANAGER of the company. I don’t think you need to have people call you Mr. President or Madame President, but they do need to know you are representing the company and not acting on your own.

Read more

Should I Reimburse the Company or Take a Distribution?

Item #17 on Lee’s formalities checklist reads “Are you sure that you have properly documented all transactions between you and the company, with resolutions, minutes, etc?”  Reimburse responsibly.  In other words, have you made sure any reimbursements for personal vs business expenses have been properly made and […]

Read more

Minimize IRS Audit Pain

This article is written by Ben Rucker, a former special IRS auditor.  The video, of course, is of Lee Phillips. Item #16 on Lee’s formalities checklist allows you to minimize the pain of an IRS audit: “Are you sure that your tax returns, books of account, and […]

Read more

Commingling

#15 in my formalities checklist is one of the most important: “Have you kept separate books and bank accounts for the company and yourself, making sure at all times never to commingle any funds?” Commingling problems occur when business funds are mingled with personal funds and vice […]

Read more

Give Managers Their Power

Item #14 on my formalities checklist asks, “Have you made the appropriate resolutions of the Managers to authorize and document all major company acts?” In your LLC or corporation, the company’s ruling body (managers in an LLC or directors and officers in a corporation) needs to formally […]

Read more

Doing Business in Multiple States

#13 on my formalities checklist asks whether your LLC is legally doing business in other states. If you have an LLC or corporation that is formed in one state and is doing business in another state or owns property in another state, the LLC or corporation has […]

Read more

Tell the IRS How to Tax You

This post was written by Ben Rucker, Tax Specialist.  The video, of course, is of Lee Phillips. #11 in Lee’s formalities checklist asks if you have secured your Federal Tax ID number. #12 asks if you have made the proper tax election. The form of business you […]

Read more