Each state charges a fee for the formation of a limited liability company (LLC) or corporation in the state. Each state also charges a fee, which may be the same or higher than the formation fee, when a foreign entity registers to do business in the state (see our discussion about choosing a state).

There are many common elements in an articles of organization, which is a key element in establishing the business entity.

Besides filing an articles of organization, the formation of a limited liability company (LLC) or corporation requires completion of a number of tasks.

There are many common elements in an articles of organization, which is a key element in establishing the business entity.

There are many common elements in an articles of organization, which is a key element in establishing the business entity.

There are many common elements in an articles of organization, which is a key element in establishing the business entity.

When forming the limited liability company (LLC) or corporation, each business entity must be created by filing articles of organization with the state in which the owner has decided to form the business. The business owner is free to form the entity in any state, and not merely in the state in which he will be doing business. Delaware and, to a lesser extent, Nevada have emerged as popular sites for business formation.

The limited liability company (LLC) and corporation are creations of law, and as such, a number of legal requirements must be satisfied to formally establish your business entity.

John, Peter and Amy form a limited liability company (LLC). John contributes a building with a tax basis of $80,000 and a fair market value of $170,000. The contributed property was subject to a liability, and the LLC assumes this $60,000 mortgage liability on the building.

When using asset protection strategies to limit liability in your business structure, one of your first decisions involves choosing an organizational form, most likely a corporation or limited liability company (LLC).

How taxable allocations of income and interests are figured depends on a number of factors when strategically funding the business.

How taxable allocations of income and interests are figured depends on a number of factors when strategically funding the business.

How taxable allocations of income and interests are figured depends on a number of factors when strategically funding the business.

Certain contributions made for ownership interests may be taxable events.

Certain contributions made for ownership interests may be taxable events.

Strategic funding decisions when forming a business could have serious tax implications down the road when it comes time to allocate business interests and income.

Certain contributions made for ownership interests may be taxable events.

Certain contributions made for ownership interests may be taxable events.

When strategically funding your business, certain decisions may affect your tax status. A small business owner may have to recognize gain when acquiring an equity interest in the business if the owner:

An important part of asset protection planning involves legally shielding your wealth and assets from the tax claims of the federal government.

Many small businesses are turning to the Internet when issuing securities and raising capital because it represents a centralized and inexpensive way to solicit potential investors from all across the country.

When raising money for the business, various securities law issues may come into play. You'll need to follow the rules carefully in order to preserve limited liability under the law.

When raising money for the business, various securities law issues may come into play. You'll need to follow the rules carefully in order to preserve limited liability under the law.

When considering securities law issues in forming your business, you'll need to be aware of the impact of federal regulation.

From an asset protection standpoint, a small business owner should be aware of some securities law issues.