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ading sessions.
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have waited e
raise short-term
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t rate hike cycle
Quart
News
E. Thousand O
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5) 496-5474
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owners have r
ng bust. In fact
reases and low
ed from the low
sent. Certainly
a mixed econom
dustries have en
, we see posi
manufacturing
we all enjoy at
ding elsewhere
ofits for equity
le nobody th
n high gear, th
d confidence is
China?
ay fall further.
news for inves
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e sector appe
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est Rates Risin
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r the U.S. Fede
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te hike cycles.
y
er
e 257
Page |
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3. Page | 3
Do I Need a Company?
Over the last six months we have had a tremendous number of
clients starting businesses or wanting to make changes to an
existing business. One of the first questions asked is, “Do I
need to incorporate?”
The answer is often complex and reliant on many different
factors such as business type, tax issues, owner types and
business goals. As an overview, here are the common types of
business entities. Each of these entities, depending on location
may need to obtain a business license, a sales tax permit or
other license to properly conduct their business.
Sole Proprietorship: This is an unregulated model of a single
person selling services or products. Income and expenses are
reported on their personal tax return. Generally, in order to
have a business name (i.e. DBA) and a bank account in that
name a fictitious business name request is filed with the local
county clerk. There is no asset protection features in a sole
proprietorship. This is the default entity for any single person
conducting business.
General Partnership: This is an unregulated model of more
than one person selling services or product. Income and
expenses should be reported on a Partnership Tax Return with a
K-1 being given to each partner. A fictitious business name
and a separate Tax Identification Number are normally
established for the partnership. All partners in a general
partnership are liable for the actions of the other partners – this
increases the liability of the partners. This is the default entity
for more than one person conducting business.
Corporation: A corporation is a regulated business entity that
is filed with the Secretary of State. Income and expenses are
reported on a Corporate Tax Return and the corporation must
have its own Tax Identification Number. Corporations may
provide asset protection for the owners (shareholders) by only
placing at risk those assets held by the corporation for liabilities
generated by the activities of the Corporation. There is a cost
associated with creating and maintaining a corporation,
generally based on either gross revenues or profits and paid to
the State(s) in which it operates.
S-Corporations: So named because of the IRS Code they
are described in, S-Corporations are designed for small
businesses with few shareholders. Their main feature is that
the profits of the S-Corporation are passed through to the
shareholders. That is, there is no income taxation at the
corporate level, just on the shareholder’s personal returns.
C-Corporations: Also named because of the IRS Code
which describes them is designed for any size operations.
They have great flexibility in structure and size. However,
profits of a C-Corporation are taxed before distribution to
their shareholders, which are in turn taxed on their personal
returns.
Limited Liability Companies (LLC): An LLC is a regulated
partnership which is filed with the Secretary of State. Income
and expenses are reported on a Partnership Tax Return and the
LLC must have its own Tax Identification Number. LLCs
provide asset protection for the owners (members) by only
placing at risk those assets held by the LLC for liabilities
generated by the activities of the LLC. Depending on the State
an LLC may also provide for inter-partnership liability
protection. There is a cost associated with creating and
maintaining a LLC, generally based on either gross revenues or
profits and paid to the State(s) in which it operates. Certain
professions are not allowed to form an LLC and must instead
form a professional corporation.
Note that in some states an LLC may be formed by an
individual. In general, single-member LLCs are disregarded
for tax purposes.
Limited Partnership: Limited Partnerships (LP) are a
regulated entity that separates the day-to-day operational
control and liability of the partnership’s activity. The General
Partner controls the company and the Limited Partners are
passive investors. LPs provide asset protection for the Limited
Partners by only placing at risk those assets held by the LLC
for liabilities generated by the activities of the LLC. General
Partners are personally liable for the actions of the LP.
There are other types of special purpose entities, including
variations on the corporate structure, trusts and partnerships.
All the general entities listed can be customized depending on
the needs of the owners.
It is important to work with your legal and tax specialist to
determine the level of asset protection, control and flexibility
you need to enhance your business. We look forward in
assisting you in making the right decision.
Michael E. Garner, Esq.
Certified Specialist in Estate Planning, Trust and Probate Law
MFA Wealth Services Thursday, December 31, 2015

4. Page | 4
About Our Firm
Over the past 15 years we have experienced a period of rapid
growth and development. The breadth and depth of the services
we provide have continued to expand to satisfy the growing
needs that you, our valued clients, have expressed. Some of you
may not be aware of the depth of services we provide. We
thought it would be helpful to outline those services for you.
The Meador Financial Group is comprised of a closely
aligned group of independent professionals dedicated to
providing comprehensive financial services. The independent
members of the group are described below:
Meador Financial, Inc., dba Meador & Associates and MFA
Wealth Services - is an independent Registered Investment
Advisory (RIA) firm providing advanced wealth services,
including financial planning and wealth/asset management. The
founder, Jerry Meador, is both a CPA (Certified Public
Accountant) and CFP (Certified Financial Planner) and co-
partner in Tone, Walling & Meador, LLP. The supporting staff
includes licensed financial professionals, other CPAs and CFPs.
Tone, Walling & Meador, LLP - is an independent partnership
of Certified Public Accountants (CPAs) providing accounting,
bookkeeping, tax preparation and auditing services. Combined,
the three founding partners have more than 100 years in the
accounting industry.
Cornerstone Law Center, Inc. - is an independent law firm
providing clients with business and estate planning solutions.
The founder, Michael Garner, has practiced more than 20 years
as an attorney, is a Certified Specialist in estate planning, trust
and probate law, and holds a CFP® (Certified Financial
Planner) designation.
We combine, coordinate, implement and manage the services
described. Our clients have access without the burden of
managing independent professionals. In doing so, we provide
advanced solutions efficiently and effectively.
As your most trusted advisors, we look forward to providing a
powerful array of essential financial services to you.
Independent Professional Team
Members
Meador & Associates (Meador Financial, Inc.)
Certified Financial Planners
Offering Financial & Estate Planning
Wealth Management Services
www.mfaws.com
Jerry@mgmcpa.net
(805) 496-5474
Tone, Walling & Meador, LLP
Certified Public Accountants
Offering Tax and Accounting Services
www.twmcpa.com
shenley@twmcpa.com
(805) 496-5474
Cornerstone Law Center, Inc.
Offering personalized Estate, Trust and Business
Planning Services
MGarner@CornerstoneLawCenter.com
(888) 686-7526
Catalyst Lending, Inc.
Karen Card, Loan Officer
Kcard@catalystlending.net
www.karencard.com
(714) 505-2508
Meador Financial, Inc., dba MFA Wealth Services and Meador &
Associates is a Registered Investment Advisor and offers Securities
through United Planners Financial Services Member: FINRA,
SIPC. United Planners does not offer tax or legal advice. Meador
Financial, Inc. does not offer legal advice. Meador Financial, Inc.,
Cornerstone Law Center, Inc. and United Planners are non-affiliated
companies
MFA Wealth Services Thursday December 31, 2015