1) Is my corporate structure still working for me? The answer may surprise you. If your company is considering expansion by attracting investors, increasing production, or establishing new locations in other states, then you may be outgrowing your limited liability company. On the other hand, if your corporate formalities (and corporate filing fees) are becoming an annoyance, incorporation may not still be your best bet. If you are still working solo, please, PLEASE call me or any other business lawyer to explain why a sole proprietorship is the least advantageous (and potentially most costly) business structure to operate in.
TIP: Florida makes it easy to start corporations and LLCs online through the Sunbiz.org website, but filing those electronic Articles is only part of the process. Florida Statutes 607 and 608 contain many other required formalities to comply with.
2) How about a business line of credit? LOC rates (which are tied to the US Prime Rate) are currently very low, but with the Dow and S&P 500 showing solid improvement this quarter, they won’t stay that way. The advantage of a LOC is that it usually costs nothing until you choose to access the funds. If an unexpected opportunity or emergency comes your way in 2012, wouldn’t your small business like to have some capital available to quickly take action?
TIP: The Federal Open Market Committee met on April 24th, and decided to keep the US Prime Rate at 3.25%, but said, “The Committee expects economic growth to remain moderate over coming quarters and then to pick up gradually”
3) Your 2019 Tax Rate is Anybody’s Guess. My advice is to find a tax pro that may have a few planning ideas that you can implement right now while the sting is still evident and last year’s tax paperwork is close by to make your tax preparation and maybe your bill a little easier for next year.
TIP: You should ALWAYS consult your tax advisor to help answer specific questions regarding how tax laws apply to you and/or your business. NEVER take tax or legal advice from the internet.
The Law Office of Brandon Woodward P.A. is eternally grateful that you have visited our website or read our blog. The materials and information contained here are provided for informational purposes only and are not to be considered as legal advice. For questions about startups, founding documents, corporate agreements, business entities or any other legal issues facing your business, EMAIL US, and we’ll set up a consultation.