By: Attorney William W. Wirkus
Opening a small business or startup company can be a daunting task. The steps to opening a business, applying for permits and licenses, and setting up a framework for success requires careful planning. Contact an experienced business lawyer for legal advice to help you navigate statutory and other legal requirements of a new business. Here is a continuing list in our series entitled Most Common Questions About Small Business that our business attorneys can assist you with:
1) Q: Should my rental property be in an LLC?
A: It is strongly recommended that any rental property or property used to generate income be owned by an LLC for purposes of liability protection. Our licensed business attorneys can discuss this simple process and setup an LLC for your rental property.
2) Q: Does my LLC need an operating agreement?
A: While not a strict legal requirement in Wisconsin, every LLC should have an operating agreement, even if there is only one owner (member). An operating agreement helps to show that your LLC observes corporate formalities, establishes guidelines for running the LLC, and helps to govern the relationship and avoid disputes between multiple members of an LLC. One of our business attorneys at Walden, Neitzke & Kuhary, S.C. can assist you in preparing the right operating agreement for your LLC’s size and specific situation.
3) Q: How does my business pay me? How much should my business pay me?
A: This can be a complicated questions for which you should consult with a business attorney and your accountant. Generally speaking, members of an LLC will take what’s called “owner’s draw” or “distributions” from the LLC’s profits. A C or S corporation will generally pay its shareholders a combination of salary, bonus, and dividends or distributions. There are specific rules and guidelines for payments to shareholders of a corporation, so it is important to seek accounting and legal advice, to avoid unforeseen tax and legal consequences.
Contact Walden, Neitzke & Kuhary, S.C. today for a business lawyer free consultation to discuss your business needs. https://www.waldenlaw.net/contact/ or (262) 518-9895
Attorney William W. Wirkus
Attorney James R. Walden
Disclaimer: This article is general in nature, is not exhaustive, and should not be relied upon as legal advice, because legal advice cannot be given without full consideration of all relevant information relating to an individual’s situation. This information is intended for Wisconsin only.