Originally Posted by mpac165
Thank you very much for that information.
Since our company is not an LLC
- do I need to register as an LLC?
- is it necessary?
NOT registering as an LLC - how does that affect the taxes, if at all?
Okay, so basically, our company sells the patent, we split the profits, pay taxes, then dissolve the company, sound good?
- do I need to register as an LLC? ==If you want yes but .it is up to you; Choosing the right form for your business may be important to your future success. You need to choose What the right structure for your business is. however as you said,?
On our Patent, it states our individual names, and our company name, followed by 'LLC'.?>then, since your biz form that want is an MMLLC,as an MMLLC(just like a partnership) , you need to register the biz as an MMLLC with the your state secretary of state. A LLC is a legal entity formed under state law to run a business
You also said,? We Only Registered the Company/name.?===> UNLESS you registered the biz as an LLC, you can not use the term LLC;
- is it necessary? =>.As said , forming your biz as an LLC is NOT necessarily; if you want you may incorporate your biz as an S or regular C corp or LLC;What I mean is that if you want you may set up your biz as a LLC and elect it tobe taxed as a S corp or a C corp or etc.
NOT registering as an LLC - how does that affect the taxes, if at all? ==>it depends; I can ot explain all .. takes too much time; so you need to decide your biz form first then let me know.aas said, An LLC is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner?s tax return (a disregarded entity). Specifically, a domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation. An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation.
Okay, so basically, our company sells the patent, we split the profits, pay taxes, then dissolve the company, sound good?=>then you may form it as aMMLLC LLC (partnership) I mean ; however it is up to you if you want to form your biz as a LLC elected to be treated s a S corp or C corp or just a LLC as a partnership. You may contact an IRS enrolled agent /a CPA doing taxes in your liocal area form profession l help.