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Commonly asked Questions
We are asked interesting questions about small business everyday. Acacia Business Solutions takes pride in answering each and every question. If you have a question and don't see it answered below, please call us at 775-841-1876 and a Business Specialist will be glad to answer your question.
Incorporating and Forming an LLC
I am starting a Company. Should I form an LLC or a Corporation? There are many factors that an entrepreneur needs to consider before deciding whether to incorporate or form an LLC. Are you going to want to issue stock? If so, a corporation may be the right choice for you. Are you seeking to avoid "double taxation?" If so, you may consider forming an LLC.
Are there any states in which it is NOT good to Incorporate within? Yes. It is recommended to stay away from California, Alabama, Kentucky, New Jersey, New York, Pennsylvania, Tennessee and Texas LLCs. States can levy a franchise tax or capital values tax on the LLCs. California is the worst state to hold an LLC.
Is forming a company outside my hometown legal? It is most definitely legal. In fact, large corporations have done so for many years.
Registered Agents
Why do I need a Registered Agent State law requires corporations and Limited Liability Companies (LLCs) to maintain a registered address for important legal documents.
What does a Registered Agent do? A Registered Agent receives and forwards legal documents (called service of process) on behalf of a company. The Registered Agent must be available during all business hours to receive service of process.
I am at my place of business almost all of the time. Why can't I be my own Registered Agent? Most businesses choose a third party to act as their Registered Agent. This can help avoid the embarrassment of being served with legal paperwork in front of friends or neighbors. Also, Acacia can always receive your service of process, even when you leave the office.
Amendments
Why do businesses file amendments? Most commonly, companies file amendments to reflect changes in their name, purpose, address, or management.
My company has shifted its purpose. How soon should I file an amendment when something changes? As soon as possible. Some state statutes include guidelines for amendment filings.
Resolutions and Written Consents
What is the difference between a resolution and a written consent? Resolutions and written consents refer to the same actions. A resolution typically occurs by vote at a meeting. A written consent documents the same action in writing and includes the signatures of everyone who would have voted.
Do all companies need resolutions? State governments don't require corporations and LLCs to file resolutions with the state. However, we recommend that companies use resolutions or written consents to reflect changes in the business.
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