Reasonable and Necessary Compensation: Undocumented Work Disqualifies Benefit Reimbursements

by e-LawLines | Aug 16, 2008 | Corporate Law, Small Business Law, Taxation

Compensation paid by a business, whether a corporation, limited liability or sole proprietorship must be “ordinary and necessary” to be deductible for corporate income tax purposes. If such compensation does not meet the “ordinary and necessary” standard, or if the...

Taxes Beyond Choice of Entity; Minimizing Employment Taxes

by e-LawLines | Jun 16, 2008 | Corporate Law, Small Business Law, Taxation

When forming a new company, you have a choice of business entities. For most small business owners, electing to be taxed under the Internal Revenue Code as a Subchapter “S” corporation or forming a limited liability company are the obvious choices for the...

Meeting Minutes and Written Consents: Sound Reasons for Complying With a Simple, Yet Necessary, Task

by e-LawLines | Oct 16, 2007 | Corporate Law, Small Business Law

Individuals form corporations and limited liability companies (“LLCs”) in order to have the benefit of limited liability. Of course, filing the necessary Articles of Incorporation or Articles of Organization with the Secretary of State is a necessary prerequisite to...

Non-Matching Social Security Numbers: An Employer’s Guide in Resolving

by e-LawLines | May 16, 2006 | Commercial Law, Corporate Law, Employment Law, Small Business Law

Regardless of your company’s business classification, all companies are required to report employment compensation, tax withholding and other information on both quarterly and annual bases to the Internal Revenue Service (“IRS”). Sometimes through clerical error, and...

Consequences of Doing Business in Other States Without Qualifying

by e-LawLines | Feb 16, 2006 | Corporate Law, Small Business Law

When a business entity does business in a state other than in its state of organization, the business entity may be required to “qualify.” Qualify means nothing more than obtaining a certificate of authority and appointing a resident agent upon whom legal process may...

Piercing the “Veil” of a Company’s “Limited Liability”or Looking Through the Entity to Hold Owners Liable for a Company’s Debts

by e-LawLines | Jan 16, 2006 | Corporate Law, Litigation, Small Business Law

A recent Missouri Court of Appeals case out of the Eastern District of Missouri now gives us an indication of how the Missouri courts will approach the issue of piercing the “corporate veil” of a limited liability company. The case is Mobius Management Systems, Inc....