Posts Tagged ‘single member llcs’

Can a Non-Profit LLC Be Tax Exempt?

Non-profit mailing labelWhen you talk about a non-profit business, you are generally talking about two things: being registered as a not-for-profit company in a state, and being recognized by the IRS as a tax-exempt 501(c) — typically 501(c)(3) — organization. Without approval by the IRS, your business will pay income tax whether or not you are a non-profit.

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Categories: Taxation   Tags: , , , ,

Adding a Member to a Single-Member LLC

Silhouetted hands raised with the text New MembersAdding a member to an LLC is straightforward, but there are slightly different considerations when you add a new member to a single-member LLC. You will not need to re-register your LLC with the state, but you may have to file an amended Articles of Organization.

Though not required, you should also amend your Operating Agreement to clarify the relationship you have with your new partner. Due to the flexibility of the LLC structure, your new partner may invest any amount of time or money into the LLC and receive any share of the LLC you two deem agreeable.

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Categories: LLC Advantages and Disadvantages   Tags: , , , , , ,

What Happens When an LLC Member Dies?

tombstoneA sudden death in a business can create discomfort as other partners struggle to figure out the new company ownership. In the case of single-member LLCs, a death can mean the end of the company. However, unlike sole proprietorships and partnerships, LLCs can survive beyond the deaths of their owners. Whether it does or not is determined by the LLC’s operating agreement.

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Categories: Dissolving or Transferring an LLC   Tags: , ,

Does a Single-Member LLC Need an EIN?

EIN barcodeAn Employer Identification Number, or EIN, is a unique tax id number assigned to businesses so that the IRS may keep track of them. In this way, the EIN is very similar to your Social Security Number. If an LLC has more than one owner — or “member” — it must apply for an EIN. Additionally, if the LLC has any employees other than the single owner, it must apply for an EIN.

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Who Can Own an LLC?

HandshakeLimited liability companies are very flexible business entities, and this applies to ownership restrictions as well. The owners of an LLC are called members. A single member can own an LLC by him or herself, but a partnership of members, a group of members, or even a group of businesses can own an LLC. Limited liability companies are creatures of state law, which means every jurisdiction in the United States will have slightly different rules. The limitations on ownership, however, are fairly consistant across the country.

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Categories: Formation   Tags: , , , ,