An S corporation can have only one class of stock. Benefits of an S corporationS corp shareholders are not personally liable for the company’s debts and liabilities. S corps are not subject to corporate income tax. Instead, income, deductions, and credits pass through to shareholders, who re...
Understand the key benefits of LLCs, C Corporations, S Corporations and DBAs before deciding which entity type is right for you. Read our articleComparing company types: Understanding C Corp, S Corp, LLC and DBA Business Structures. LLCs versus S Corps While the S corporation and LLC b...
Preparing the S corporation’s tax returns (Form 1120S) Since the IRS is a huge organization, the right hand doesn’t always talk to the left hand. Shocking, we know. Additionally, the IRS is bound by regulation to process Form 2553s within 60 days. However, they don’t, and they ar...
There may be tax benefits versus a sole proprietorship No need to register a fictitious name - LLCs must have their own There's more paperwork, fees and other potential ongoing costs to stay in compliance versus a sole proprietorship If you want to add owners or members, you'll no longer ...
One reason why LLCs can be well suited for side projects is because money and intellectual property (IP) can flow relatively freely between the members of an LLC and the LLC itself, often without the tax consequences that would result if the transactions happened in a C corporation, and ofte...
Key Benefits of Being an Independent Contractor Benefits of Forming an LLC What Is a Contractor LLC and Why Should You Consider It? 1099 Contractor vs LLC: What’s the Tax Difference? When Should Independent Contractors Form an LLC? How to Form an LLC as an Independent Contractor Conclusion ...
It is unclear whether the benefits of a charging order as the sole remedy for a series member’s own creditors applies in the context of a series. For a discussion of that concept, see the description of an LLC or an LP. Formation and Franchise Tax ...
From personal asset protection to favorable tax rules and regulations, LLCs provide a range of benefits to business owners. Choosing the best LLC service provider will help you navigate the process and ensure that your application with the state is accepted. However, with the varying services and...
Since tax is one of the biggest differences between an LLC and sole proprietorship, let's dive into that, next. Tax Benefits of LLC vs Sole Proprietorship Disclaimer: The information provided in this blog article does not, and is not intended to, constitute financial or legal advice. You're...
If you so choose, your profits still flow straight to your personal tax return, making taxes pretty straightforward. You may enjoy more retirement benefits. In regard to retirement planning, LLC members can establish retirement accounts like SEP IRAs, SIMPLE IRAs, or Solo 401(k)s, potentially ...