Real Estate Investing Facts

Have you ever been hit by something that you should have prepared for…and didn’t? It’s like the time when you computer crashed and you hadn’t backed it up in a few weeks or you spent hours on a document that you hadn’t saved as you went? Well, if you have a business there is something that you might have put off that will hurt you much more, if you get caught.

I’m talking about documentation that you need to prove you legally and legitimately are running a business. It’s the stuff that doesn’t really matter, until it does matter. Without it, you could lose everything you own in a lawsuit or find yourself buried in tax liens that you can’t ever get out of.

This is the documentation that you need to have so you can keep out of hot water if the worst happens.

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Here’s a quick list of the basic documents you’ll need to create a C Corporation, S Corporation or an LLC:

C Corporation Articles of Incorporation (filed with your home state) Bylaws Share Certificates Organizational Resolutions of the Directors Organizational Resolutions of the Shareholders
IRS Tax ID Confirmation Filing Letter (this is generated when you file IRS Form SS-4, either by mail, fax, or online at the IRS website)

State Business License S Corporation
Articles of Incorporation (filed with your home state)
Bylaws Share Certificates
Organizational Resolutions of the Directors
Organizational Resolutions of the Shareholders
IRS Tax ID Confirmation Filing Letter (this is generated when you file IRS Form SS-4, either by mail, fax, or online at the IRS website)
IRS Form 2553 S Corporation Election
State Business License

Limited Liability Company
Articles of Organization (filed with your home state)
Operating Agreement
Member Interest Certificates
Organizational Resolutions of the Managers (if you have a Manager-Managed LLC)
Organizational Resolutions of the Members
IRS Tax ID Confirmation Filing Letter
(this is generated when you file IRS Form SS-4, either by mail, fax, or online at the IRS website)
State Business License

If you’re filing your LLC as a C Corporation you’ll also need IRS Form 8832, or If you’re filing your LLC as an S Corporation, you’ll need IRS Form 2553.

With these documents, you can be sure that your business structure will have at least the minimum required to stay legal and keep you protected. The fewer of these documents you have, the more trouble your business could have surviving a challenge from a lawsuit or from a tax audit.

Stay informed! At US TaxAid, we’re always looking to bring you the most current tax information out there, and to break it down into language everyone can understand. If you know anyone else who might benefit from the information resources you’ll find here, tell them to come and check us out. Remember, membership on our www.USTaxAid.com website is FREE.

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