What Determines the Structure of an LLC?

Most people have heard of a sole proprietorship or a corporation, and in general, their business structures are relatively simple to comprehend. On the other hand, very little is known about the exact structure and nature of a limited liability company (LLC). Is an LLC similar to other business structures? How are LLCs formed and managed? Continue reading to learn the answer these questions and the LLC formation process.  

What is an LLC?

From a legal perspective, the owners of an LLC, often referred to as members, are not personally liable for any debt accrued by the company. This does not mean they will not be held responsible for any business debt they accrue, but in the event of a lawsuit, members will not have to use their personal funds or assets to pay settlement costs. Also, if the LLC files bankruptcy, the court will not be able to go after the personal funds and assets of the members.

When the time to file taxes arrives, the LLC itself will not file income taxes. However, each member will use any business profits and losses they accrued to file their own personal taxes. Before a company can list itself as an LLC, it must file state documents, pay any applicable filing fees, and in some states, pay an additional franchise tax.

Organizations Prohibited From Forming LLCs

Starting an LLC is a good idea if you want to protect your personal funds and assets from lawsuits or debt collectors. However, for legal purposes, the following types of businesses and organizations are often prohibited from forming LLCs:

  • Medical facilities
  • Accounting firms
  • Banking and insurance companies
  • Architecture firms

Due to the nature of their services, the types of organizations listed above must have some sort of liability.

Learn More

When completing a tax ID form, organizations will need to indicate their legal structure. This will allow them to file taxes and open a business account without a problem, even if they choose to operate as an LLC. Contact Gov Doc Filing today to learn more about LLCs and their tax requirements.

Getting into the precious metals market – a beginner’s guide

If you have spent any time looking at the different options for financial planning and investing, the chances are you’re already aware that precious metals such as gold or silver can represent an excellent way to diversify your portfolio. In other words, they allow you to spread the risk, such that if one subset of your investments loses value, another will increase.

Precious metals are ideal in this respect, as they have a proven track record of delivering consistent long-term returns. The fact that everyone knows this and tends to rush into buying gold and silver at the first sign of financial trouble almost makes this a self-fulfilling prophesy, as the increased demand further drives up prices.

Nevertheless, knowing it makes sense is one thing, knowing where to start can be another. The following overview will get you off on the right foot.

What metal are we talking about?

Precious metals are, by definition, ones that are naturally occurring and relatively scarce. Obvious examples are gold and silver, and these have had value and prestige throughout history.

However, it is not all about jewelry and coins. Gold and silver have many industrial and medical uses, and these are increasing as technology marches ever onwards, further driving up prices. Industrial demand has also brought other precious metals, such as platinum, magnesium, palladium and zirconium to the fore.

Isn’t this a little old-fashioned?

Given that we now operate in an age of paper money and even virtual currencies like Bitcoin, you might think precious metals belong to a bygone investment age. The point about fiat currencies, though, is that they are completely exposed to socio-economic and political factors. Nobody has a crystal ball, but history has shown us that currencies can collapse under their own weight in extreme circumstances. It has happened numerous times over the centuries and will almost certainly happen again.

Yet gold, silver and the rest have not just held steady under these circumstances, they have typically escalated in value. When the going gets tough, precious metals have always been seen as a safe haven, and that is not going to change any time soon.

How to get started

Any investment strategy needs to be carefully thought-out and should follow a strategy that incorporates sound risk management principles. So before you do anything, think about the proposed investment in the context of your overall portfolio. What are your aims, how much will you invest and what are your liquidity needs? This last question is particularly important, as it will dictate the form of precious metal you might buy. Trading companies like Golden Eagle Coins can supply anything from silver dollars by the bagful, which can be easily converted back to cash as needed, to large gold bars worth tens of thousands of dollars each.

The most important point is to make sure you buy from a trusted and recognized source. Unfortunately, there are scammers in every walk of life, so avoid buying from private individuals unless you are completely confident that they are on the level.


Saving Money on Household Expenses

You can reduce your monthly household budget by minimizing many expenses. Some of them allow you to save large amounts of cash while others seem like small savings but they add up over time.  From food costs to Box 24 Casino entertainment expenses you can find many ways to cut down on your monthly expenditures. 

Save on Transportation Expenses

The best and most effective way to save on transportation expenses is to get rid of your car and use public transportation. That doesn’t work for most people these days – public transportation doesn’t always get to where you want to go and, in many parts of the country, there is no real public transportation.

You can reduce car expenses in a number of ways: 

Reduce your Car Payment

You can reduce your car payment by refinancing your loan. When you expend the loan term it can lower your payments (though in the long run you’ll pay more in interest). You should also think about getting a smaller, less expensive car. Some smaller cars are actually more expensive but if you shop wisely you can find a car that is better suited to your budget, both in the car’s total cost and in long-term savings in gas and maintenance.

You can also lower your insurance costs by shopping around. Review the policy to make sure that you get all the discounts for which you quality – home and car discounts, good-driver discounts, discounts for people in specific professions, etc. Also, if your car isn’t very expensive to begin with, you might want to remove collision and comprehensive insurance that will pay if your vehicle is damaged. It could be that you’re paying more for the insurance than the care is worth. 

Finally, change your driving style to save on gas. Rapid acceleration is the biggest cause of gas guzzling. Drive moderately and steadily, keep your car tuned, keep the tires full of air and don’t bother with premium gas since experts say that there’s no advantage to buying premium gas. 

Save on Utility Bills

Everyone has utility bills – either you’re heating or you’re cooling. And everyone needs water. So is there any way to save on these expenses? For sure! 

Update your light bubs by installing CFL or LED light bulbs. CFLs and LEDs are approximately four times more energy efficient than incandescent bulbs. They also last for much longer. Check the bulb’s packaging and check the lumens number to compare bulbs as opposed to the equivalent wattages. Lumens refers to the actual amount of light that the bulb emits. 

Replacing a 60-watt bulb with a 14-watt CFL or LED saves about $0.66 per month under normal usage (four hours a day) and average electrical rates ($0.12 per kilowatt hour). Once you multiply that number by all the bulbs in your house you can see how much money you’ll save. Even if you just switch the bulbs in the five most-used lights in your house you’ll save $40 or more on your yearly electric payments.   

Save on heating and cooling costs by air sealing your home. Air sealing prevents drafts which causes you to lose cool air in the summer and warm air in the winter. 

Ask an electrician to lower the temperature on your hot water heater. The hot water heater is a major energy drain, accounting for approximately 14% of a home’s energy costs. You don’t need to keep the water at a boiling temperature so there’s no need to set the boiler’s heater to the maximum temperature. 

Save on Entertainment Expenses

Entertainment expenses are generally the first thing to go when a household is budgeting but it doesn’t have to mean eliminating the entertainment. Just consider how to reduced those expenses. 

For one thing, you don’t need a club membership. You probably don’t use it very often and you end up paying for a year’s membership while you use it only a few times a year. Cancel the membership and just pay per visit, or else use a public pool or golf course. 

Cancel your cable bill. You can find a number of ways to gain access to your favorite shows via Internet such as streaming services like Amazon Prime, Hulu and Netflix. If you really like the programs that you access through cable, investigate the basic cable costs as opposed to the premium cable subscriptions.

Visit your local library. Remember reading? That’s a relaxing activity that meets all interests. You should also keep an eye on your community’s bulletin board for free and inexpensive concerts and other types of performances.

Cancel subscriptions to newspapers and magazines. Maybe not to your favorite paper or magazine but certainly to those that you always set aside for “later.” If you see that “later” never comes and you aren’t reading those newspapers or magazines, cancel the subscription. You can always find most of these magazines and papers at your local library or online. 

Save on Food

Food is one of the biggest expenses in the average American household budget. You can eliminate waste, eat more healthily and save on your food budget easily.

Prepare your own meals at home. If you’re pressed for time, prepare double portions and freeze some of what you’ve prepared. If you have leftovers, use them – either eat them as is or re-cook them. If you take your lunch to work, pack it yourself and eliminate the costs of eating out. Regard restaurants as part of your entertainment budget – something to do periodically as a “night out” and, other than that, use your kitchen. You’ll reduce you salt intake, your sugar intake, your cholesterol intake and your food expenses by increasing your home food consumption.

Buy in bulk whenever feasible. Check out the larger packages of nonperishable items. Even if they’re not the well-known brands they can give you what you need for a fraction of the cost. Things like pastas, legumes, grains, cereals, crackers and other items are much cheaper in bulk purchases.

Use coupon deals. You can find coupons in your daily newspaper and online. If there are multiple coupons for an item that you need, buy it in bulk. Of course, don’t buy items that you don’t need!

When you apply these rules to all the nonperishables in your home, from shampoo and soap to salt and sugar – it adds up to a lot of saved money.