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Who is Mike

[unordered_list style=tick]Mike Montali is the owner and founder of Harbor Compliance. an online service tool that specialize in helping business owner or owners with their government filings to help them get registered and / or stay compliant. They also help with business tax registration and a lot more.

The website’s Information Center is a useful tool that will give you a lot of ideas about any requirements you’ll need to have before registering your business, may it be small or large businesses or non-profit.

Notes from Podcast Episode

Types of Businesses (Based on the number of owners)

Sole Proprietorship

• You are the only owner.
• You as the owner and your business are one and the same. There is no separate legal distinction between you two.

Example. I am blogging. I am making some money. I file my taxes on the money that I make, I am considered to be a sole proprietor.

Partnership   A company has two or more owners

a. General partnership

• The business and the owners are one and the same.

• Not registered with the government to form an LLC or incorporated.

b. Registered partnerships

• Not common.
• Usually more for real estate investments or legal firms.

Example: Two of us started this blog and we’re making some money, we’re filing our taxes, etc. we are considered to be in a general partnership.

B. Business structures separate from you as the sole proprietor

Limited Liability Company, LLC   Suitable for most small business owners

Corporation 

Benefits of registering as an LLC

• 2C250 /%  Limits your liability. *liability risk risk of being sued from people who youve contracted with for the blog.
• The potential for suit happens anytime money is being made from business transactions.
• Potential sources:

• affiliates
• vendors who helped with the blog
• employee
• guest writer of the blog
• other individuals who have made a contract with you

Example: The income gets passed through to the owner. The owner has that liability shield so that, if someone were to try to sue the owner, they can only sue him for whatever assets the business owns but, not his personal assets.

More of the other benefits can be found here .

Note: Sole proprietors and general partners may be sued personally since they are not separate from their business. Any of their personal assets, could be used to pay a debt, whether it’s the result of a lawsuit or otherwise.