LLC Formation
What is an LLC?
The LLC or Limited Liability Company
The LLC or Limited Liability Company is one of the newest and most popular forms of business types and is often described as a combination of a corporation and a partnership. Over 80% of small businesses are LLCs, and for a number of reasons. There are less requirements and more flexible ownership options than the other entities, and they also provide business owners with limited liability protection. This means that the company assets are typically owned by the LLC and are separate from the personal assets from that of the LLC owner(s). So things such as your car , home and personal bank accounts are separate and protected by the asset protection of the LLC if used and structured properly .
One of the most advantageous benefits of the LLC is that;
it has the ability to choose how it is taxed as an entity . By default a multi member LLC will be automatically taxed as a partnership by the IRS, and a single member LLC a sole proprietorship if not chosen to be taxed otherwise by the member or members .
What is a Corporation
Overall a corporation is a legal entity that is owned by shareholders and ran by a board of directors. Corporations have many of the rights that individuals have. They can own assets, enter into contracts, borrow and lend money, and sue and be sued. There are also benefits that go along with owning a corporation such as limited personal liability, easy transfer of ownership, business continuity, better access to funds and occasional tax benefits depending on the type of corporation . A corporation is recommended if the business has multiple members or would like to reach more investors . There are 2 types of Corporations , these include S-Corps and C-Corps .
Corporation Formation
What is an S-Corp?
An S corporation is a special type of corporation that draws its designation from Subsection S of the tax code. To start an S corporation, a small business owner starts a C corporation, then files a Form 2553. S-Corps do have more operating requirements and ownership restrictions than an LLC, but they also have significant benefits . One Benefit of the S Corporation is that similar to the LLC it receives pass through taxation. Pass through taxation means that federal income tax is not assessed at the entity level; profits are distributed in the form of dividends and flow through to the individual tax returns of the shareholders, and the IRS taxes the shareholders at their individual income tax rate and not at the entity or corporation level.
What is a C Corp?
A C corporation, or C-Corp often just called a generic corporation is the oldest and one of the most common business entities. A C corporation is a completely separate tax and legal entity from its owners. With all the requirements placed on C-corps you’d wonder why anyone would even form one. Advantages of C corps are their tax treatment and income splitting benefits. The owners can arrange salaries and bonuses in conjunction with retained corporate earnings to lower their overall rate.
What’s included with your LLC and Corp Formation
LLC
Articles of organization, EIN number and operating agreement
Corp
Articles of incorporation , EIN number , operating agreement
LLC Amendments
need to make a change to your LLC?
Address change , update registered agent info , name change
LLC Amendments
Corp Amendments
Corp Amendments
need to make a change to your Corp?
Address change , update registered agent info , name change
LLC Annual Report
This report will update the state with your LLC’s information and any changes that have been made to the business
LLC Annual Report
Corp Annual Report
Corp Annual Report
This report will update the state with your Corp information and any changes that have been made to the business
Creating a Business Address
We also offer the creation of your business address . We can take that off your hands as well !