LLC and S-corp: Definitions What is an LLC? LLC stands forLimited Liability Corporation; it may also be known as a sole proprietorship. Forming an LLC can provide legal protections for the owner from; lawsuits, and liability protection, and makes the business a legal entity. ...
Generally, most entrepreneurs choose to form a Corporation or a Limited Liability Company (LLC). Making the decision between LLC vs Corporation is an important step in the business formation process. The main difference between an LLC and a corporation is that an LLC is owned by one or more ...
LLC Q&A below. What is an S Corp? What is an S Corp? An S Corp, or S corporation, is a type of corporation that is a separate legal entity from its owners. If you own an S Corp, you can receive both wages and distributions. To become an S Corp, your business must first ...
Consider these pros and cons to determine whether organizing your small business as a close corporation would be the right choice for your business.
Like a corporation, LLCs provide their members with limited liability. And like a partnership, LLCs have pass-through taxation so profits are taxed as part of the members’ personal income. However, LLCs have some drawbacks too. For example, the members of an LLC have to pay self-employed...
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C corporations are the most common type of corporation, versus S corporations or LLCs. Advantages and Disadvantages of a C Corporation C corporations limit the personal liability of the directors, shareholders, employees, and officers. In this way, the legal obligations of the business cannot becom...
New small business owners may choose to operate as a sole proprietorship because it’s less expensive and easier to set up than other business structures, such a limited liability company (LLC) or corporation. With fewer hoops to jump through than other business forms, sole proprietorships are ...
An LLC (limited liability corporation) is a popular type of business structure, especially for small businesses—but just because they’re common doesn’t necessarily mean they’re right for you. Learn the pros and cons of starting an LLC....
LLCs and corporations do require upfront fees for creation. The specific fees vary across state lines and industries. For example, registering a business corporation in Georgia can cost you nothing other than only $50 in state filing fees. Additionally, the IRS charges companies nothing for EIN...