Latest Articles from Jeramie Fortenberry
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Double Taxation vs Pass-Through Entities
Find out which businesses are subject to double taxation on their income and which escape double taxation as pass-through entities.
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C Corp Startup Strategy
High-growth technology startups can use the C Corp Startup Strategy to keep taxes low during operation and cash out in a tax-free sale.
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Using C Corporations for High-Growth Startups
Why C corporations are usually the best choice for high-growth startups, and how VCs think about the decision to choose a corporation or an LLC.
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The Wait-and-See Approach to Bootstrapping a Business
Founders that plan to bootstrap their startup should use a wait-and-see approach, starting as an LLC with an option to convert to a corporation later.
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S Corporation Eligibility Requirements
Both LLCs and corporations may elect to be taxed as S corporations, as long as they meet strict eligibility requirements.
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Using LLCs for Real Estate Investment
LLCs are the entity of choice for real estate investment, providing liability protection, organizational efficiency, and tax-saving opportunities.
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How to Avoid Phantom Income
Similar provisions can also be used in partnership agreements as well as in corporate shareholder agreements and bylaws to protect the owners from phantom income tax liability. Phantom income is income that is taxable to a taxpayer even though the taxpayer has not received cash to pay the tax. Phantom income is a common problem for…
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LLC Allocations vs Distributions
LLC allocations are different from LLC distributions. It is important to understand the difference between the two.
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Member-Managed vs. Manager-Managed LLCs
For liability purposes, manager-managed LLCs are often the better choice. When forming an LLC, the owners (members) must decide how the LLC will be managed. This decision requires the members to choose between two primary management structures: Because the members must specify their choice on the formation document that is filed to create the LLC,…
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LLC Operating Agreement
Attorney Takeaways: What is an Operating Agreement? An operating agreement is an internal agreement among the members to provide for the LLC’s management and the economic relationship of the LLC owners (members) and managers. The operating agreement adds structure to the LLC and allows members to customize the LLC to their needs. This contract between…
