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The term LLC or Limited Liability Company is a relatively new term when it comes to types of business structures. The first LLC was formed in Wyoming in 1977 with the aim of providing small business owners with a new form of company structure that would be more flexible and less rigorous in the statutory requirements of operation than that required for a regular corporation.
An LLC can best be described as a partnership where each member of the organization enjoys limited liability protection. Under a traditional partnership structure, each partner shares the profits equally and is personally liable for any losses incurred during the operation of the business. The limited liability protection of an LLC separates each member from the personal liability for any debt incurred by the entity. This keeps the personal assets of each member distinct from the company’s assets. Additionally LLC’s can raise financing through offering a membership interest for sale, rather than a partnership which would have to raise funds through borrowing or rewriting the partnership agreement. Certain types of companies are prohibited from becoming an LLC such as banks and insurance companies, although the exact companies ineligible for this type of corporate structure varies from state to state.
An LLC also offers considerable taxation benefits. A shareholder or owner of a typical corporation would normally be subject to corporate tax on any income generated by the company in addition being taxed on their personal income. A member of an LLC does not have to deal with this ‘double taxation’ as there is a ‘flow through’ of funds treating all income generated from the operation of the business as personal income for taxation. Additionally, and significantly different to a standard partnership, the profit allocation does not have to be equal between the members and can be defined on an individual basis.
The rules governing the formation and structure of an LLC are also less rigid. An LLC is not restricted on the number of its members and is not required to create or comply with statutory corporate bylaws or record minutes of any company meetings. In order to form an LLC the members need to prepare the Articles of Organization with basic information about the company and file it with the Secretary of State. Many states require, and most LLCs also create, an Operating Agreement. This usually contains the basic structure of the LLC and the rules under which it operates. As this is largely voluntary most LLC’s Operating Agreements are very broad in their statements and stay loosely in line with any applicable state regulations.
One point to remember when establishing an LLC is that this is a relatively new structure and at present there is very little case law and regulation in existence to regulate exactly what the limits are. Therefore it would be wise to secure the advice of a Orlando CPA who keeps abreast of the latest changes in the LLC regulatory and legal environment.
For more information, contact KDK Accountancy Corporation at 407-677-1040.
When it comes to selecting a certified public accountant, or CPA, there are numerous options for businesses. Selecting the right CPA can be quite a daunting task, but it is crucial to find one as they can provide all the necessary accounting advice at any stage of a business – from startup all the way to succession planning. Businesses want a CPA that is a good communicator, is able to strategize to maximize all finances, and can adjust and minimize risk. The right CPA is priceless to any business. But what are some of the key things businesses should look for in their CPA?
A good CPA will want to meet with the business more than just once a year to complete tax planning. They will want to meet at least quarterly to review any progress, offer advice on any estimated taxes, and provide enough information so businesses are not surprised by a large tax bill at the close of the fiscal year.
What about the integrity of the CPA? Find out their track record when it comes to business decisions that are morally and ethically sound. While businesses cannot find this out from the actual CPA, businesses can require references. Check up on the references and see what past clients have had to say. If the CPA does not want to release any information regarding references, it is time to look at another place for a CPA.
One of the most important qualities of any CPA is their organizational skills. Businesses need to be cautious if they walk into the office of the CPA and there are stacks of papers and folders everywhere, and everything just seems a bit out of place. If a CPA has an unorganized office, it is quite possible that most likely they will be unorganized when managing the accounts of the business. Again, contacting references is always a good way to determine the organizational habit of the CPA.
Think about the personality of the CPA. While businesses may not become best of friends with their CPA, they do not want someone who is a stick in a mud. A business needs to feel comfortable, not scared or nervous, when calling their CPA to ask about advice on major purchases or business deals. While CPAs do have a reputation of being conservative and not always the best communicators, individuals should not feel uncomfortable around them.
While the advent of the internet has made it easier to contact CPAs without being in close proximity to them geography-wise, it is none-the-less beneficial to find a CPA that is located nearby. If there is some last minute paperwork to deal with that requires a business owner to travel to the office of the CPA, they do not want to spend half the day traveling to and from. While outsourcing CPA work is very attractive to some businesses, it is not always in the best interest of the business to have their CPA located in a different country that does not have the same tax laws (even though they might be trained in them).
Financial planning is defined as a process whereby an individual or a couple settles objectives, assesses all resources and assets, estimates any future financial needs, and makes necessary plans to achieve any monetary goals they may have. Financial planning includes a variety of factors, such as cash flow management on a daily basis, selection and management of investments, as well as insurance needs. There are numerous elements that are involved with financial planning. This includes items such as risk management, allocation of assets, investing, estate planning, retirement planning, and tax planning. The strategy created through financial planning offers a tailored approach that satisfies any present financial concerns as well as offer financial security for the future.
When a person wants the most out of the money they earn, financial planning can play a starring role in the plan to achieve that outcome. Through careful financial planning individuals or married couples are able to set certain priorities and work toward achieving any long term goals they have set forward. Financial planning also provides a bit of a safeguard when it comes to the unexpected, such as income loss, unexpected illness, or work-related injuries.
No two people will look at financial planning the same. Everyone has different ideas regarding what financial planning encompasses. For some individuals, financial planning means finding investments that will offer security once a person or a couple retires. For other people, it is planning investments and savings to have money ready for when children go off to get a university education.
When going about financial planning, it is best to obtain the services of a professional financial planner. Financial planners offer guidance and advice when it comes to any issues regarding financial planning. With life being complicated and sometimes hectic, sometimes it is difficult to find the necessary time to manage future financial affairs. Not only that, but financial planning is often a multi-disciplinary task that “Average Joe’s” are just not capable of understanding. A financial planner will look at the current situation of a client and all future objectives. They will analyze the current financial status of the client and then recommend a financial plan that will suit both present and future needs.
Details of the financial plan may include retirement plan contributions, portfolio of investments, a budgeting plan for all current living expenses, and projected savings growth.
Unfortunately, many people delay future planning as they are too busy maintaining their current financial situation. No matter what a person’s income level is or their future plans, financial planning is essential to any future goals. With the assistance of a financial planning advisor, any individual can implement a successful financial plan. They will also aid in maintaining the necessary discipline to stick with the plan. And do not worry if there are changes to a personal situation, such as a birth of a child, financial plans are not written in stone. The financial planner will aid in changing things around the ensure everything is properly maintained and a person’s financial future is properly taken care of.
Many will agree that finding the right financial planner is an important thing. Good financial advice makes a huge difference in one’s financial future, especially when it comes to items like estate management and retirement planning. Sound financial planning will mark the difference between making ends meet and financial freedom, or being able to retire early or working through the golden years.” However, finding the right financial planner can be a chore. Here are some tips to get the best financial planner possible.
First and foremost, be prepared when searching for an Orlando financial planner. Individuals need to know what they want from their financial planner and what they do not want. For example, does a person want a fee-based financial planner or a commission-based financial planner? A fee-based planner takes a percentage of the amount invested and there is often no conflict of interest because they are not earning a commission. On the other hand, a commission-based planner may bombard clients with sales pitches for items that will get them a large commission.
Individuals need to determine why exactly they need an Orlando financial planner. Are they looking into life insurance or are they looking for investment advice for a large portfolio? Some people are looking to start creating a retirement plan so they can be set throughout their golden years. Knowing what an individual needs and being able to articulate it is the first step in success with finding a financial planner. There are two different types of financial planners – general planners and specialists. If an individual is looking for a number of financial planning options, a general financial planner will be able to assist with everything from mutual funds to life insurance arrangements. However, if an individual is only interested in mutual funds, for example, it is beneficial to speak to a financial planner that specializes in investing, not one that deals with estate planning. Always ask what that financial planner’s specialization is.
Always interview a number of prospective Orlando financial planners. Even with a referral from a family member or friend, individuals need to know if this professional is right for them. By interviewing multiple candidates, individuals can compare weaknesses and strengths and compile enough research to make an accurate decision.
When in the interview process, there are a number of things to look for. A must is credentials. Keep in mind that while a good financial planner is able to make money, a bad financial planner is just as likely to lose it. According to the Security and Exchange Commission (SEC), all financial planners need to be licensed or registered and that information needs to be public knowledge. Also, check their experiences and qualifications. Yes, a financial planner backed by years of experience will always be a better choice than a novice. At least five years is ideal. Also look at certification as it will deem if they are qualified for the job. Whatever the credentials, make sure they are qualified in a number of financial planning topics, including investments, tax planning, insurance, retirement planning, and estate planning.
KDK Accountancy Corporation, a full service CPA firm, is dedicated to providing comprehensive accounting solutions to all businesses and individuals located in Central Florida. They recently launched their new website, http://www.orlandocpa.net, offering free consultations to get a complete understanding of your business, and provide professional advice, assist in lowering cost on taxes, increase productivity. Some of the services provided by KDK Accountancy Corporation include, but are not limited to tax preparation, bookkeeping, tax planning, IRS problem resolution, areas of estate and financial planning, and QuickBooks accounting services.
The new website is extremely intuitive and contains a number of user-friendly features. Website visitors are easily able to learn about KDK Accountancy Corporation, their services, and their professional team. The website is packed with a number of resources to assist existing and potential clients, including different guides and documents. The new website also includes a frequently updated blog that provides individuals with tips and the latest news on important accountancy-related topics, including 401Ks, legislation, taxes, and details on other services the accounting firm provides.
“We wanted our new website to have everything needed to provide clients with up to date information and lots of great resources. Visitors can take advantage of all the business information we have online,” said KDK Accountancy Corporation managing partner Bernard Kiesel.
The new KDK Accountancy Corporation website makes locating the services that best suits the business or individual extremely fast and easy. Services are broken down on the website into more manageable chunks which go further into detail about what is offered and how clients can benefit. Visitors to the website are able to read over the wide range of specialized services KDK Accountancy Corporation offers and select the service that best suits them. The website also features an RSS news feed so visitors are able to remain abreast of all the latest changes that would affect them and/or their business.
KDK Accountancy Corporation will continue to enhance and improve their website to provide further informative content and add an interactive functionality in an effort to make the website more inviting for existing and prospective clients. “Our firm is unique in the sense of our dedication to quality and professionalism, and our goal is to show customers that we offer that kind of personalized service from our accountants, on our website.” Kiesel added.
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