LLC Member Salary

As we’ve discussed in previous posts, the limited liability company (LLC) entity offers a ton of flexibility when organizing the management and economic structure of the company. Because of this flexibility, the LLC has quickly become the most popular entity to form when seeking limited liability protection for new businesses. One question that often crops up is, “Can I pay myself a salary as the owner of a LLC?”

Can LLC Members Pay Themselves a Salary?

The short answer is: It depends on how the LLC is taxed.

LLC Taxed as a Partnership

For tax purposes, a LLC is by default a pass-through entity—i.e. any money that comes into the business will “pass-through” to the individual members of the company regardless of whether they receive…

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Protecting IP

One of the first requests that investors make before investing in a company is that the founders (and all key employees) execute written intellectual property assignment agreements. These agreements make it so any intellectual property that is created by the founder for the company will be owned by the company, not the founder individually. Generally, this request does not...

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Choice of Entity

As we’ve discussed in previous posts, the limited liability company (LLC) entity offers a ton of flexibility when organizing the management and economic structure of the company. Because of this flexibility, the LLC has quickly become the most popular entity to form when seeking limited liability protection for new businesses. Below we’ve highlighted one important consideration when forming your...

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Cliff jumping - Accredited Investor Entity

It is common for investors to invest in startups and other offerings using some form of limited liability entity rather than investing as an individual. When you invest as an entity, e.g. XYZ LLC, it is important to understand the SEC’s definition of accredited investors in order to determine whether your entity is considered an accredited investor under Rule...

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Seattle Minimum Wage

Earlier this month, the City of Seattle passed an ordinance that established a $15 minimum wage for employees working in Seattle. In this post, we’ll breakdown the details of the new local law, so you have a basic understanding of how it will affect your business. 

When does the new law take effect?

The ordinance will take effect on April 1,...

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Trademark Registration

Last week, the United States Patent and Trademark Office cancelled six federal trademark registrations for the Washington Redskins name, ruling that the name is “disparaging to Native Americans” and thus cannot receive trademark protection under federal law, which prohibits the protection of offensive or disparaging language. “We decide, based on the evidence properly before us, that these registrations must be cancelled...

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Blueprint

To get the best deal, have your space meet your needs, and be in the best position to move seamlessly through the commercial leasing process, it is important to plan your commercial space. Today’s post highlights some of those key early stage considerations that will help you optimize the space planning process for your business.

Identify Your Ideal Space

The first...

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General Solicitation

There has been a lot of buzz within the investment community about equity crowdfunding for both accredited investors under 506(c) and for non-accredited investors under Title III of the JOBs Act and recently enacted state law exemptions, including the crowdfunding bill recently passed (but not yet enacted) in Washington.

The main feature of both types of crowdfunding is the company’s...

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Copyright Infringement

Many types of businesses, namely those who operate blogs or otherwise deal in information, send links and post to copyrighted material. Many of these businesses are aware that merely posting a link to copyrighted material is not direct infringement of the copyright in that content; indeed, many of these businesses make a living off the advertising...

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Commercial Lease Agreement Broker

If your business is seriously thinking about leasing new commercial space, you will need to identify the space, negotiate the terms of a deal, enter into a letter of intent, and then negotiate a commercial lease agreement to define your rights in your new space. This process can be complicated, and it can also be relatively simple. Whether it...

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