Tax Accounting Experts
Create your Corportation
Create your Limited Liability Company
Form a legal business entity
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Both protect owners so they're not personally on the hook for business liabilities or debts. Key differences include how they're owned (LLCs have one or more individual owners and corporations have shareholders) and maintained (corporations generally have more formal record-keeping and reporting requirements). Even though LLCs are considered easier to start and maintain, investors tend to prefer corporations.
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The way you're taxed and owned, and how shares work.
C corporation income is taxed twice—the business pays taxes on its net income, and then the shareholders also pay taxes on the profits they receive. With S corporation income, only the shareholders pay taxes on profits received.
C corporations have no limits on how many people and who can own shares. S corporations are limited to 100 shareholders who must be U.S. citizens or residents.
C corporation owners may get preferred stock—which comes with no voting rights but priority to dividends before common shareholders. S corporation owners can only get common stock which comes with voting rights.
About 70% of our corporation customers choose to be an S corporation, but don't feel like any decision is final. You can always convert to a C corporation later.
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It ensures that you and other shareholders aren't personally on the hook for company debts and liabilities.
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Yes, Incorporations fees are.
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Once an Employer Identification number has been assigned, you will be able to open a business account.
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Yes, we are with you in every step of the way.
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Yes, if is recommended to register in all 50 states.
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Several states could be a better choice when forming an LLC out of state. One is Delaware.
Delaware is by far the most popular choice for those forming an LLC out of their home state and prides itself on having a business-friendly reputation. The reason being is that Delaware doesn’t impose a tax on out-of-state income, meaning you won’t pay tax on out-of-state sales.
And to entice start-up LLCs, filing fees and franchise taxes are very low compared to most other states.
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Registering your name in one state doesn’t mean it will be available in another, nor does it stop another business in a neighboring state from using it.
If you are currently doing business in a single state but might expand in the future, securing your LLC in other states could be a wise move.
One-time fee Package Includes:
Articles of Organization
Certificate of Good Standing
Express processing 2-day turnaround time
Comprehensive name search and business entity filing
Employer Identification number (EIN)
Seller's Permit (Resale Number)
1 yr. registered agent service (out of state filing)
Business Email address
Domain name with privacy
Compliance notifications and advice
One-time fee Package Includes:
Articles of Organization
Certificate of Good Standing
Express processing 2-day turnaround time
Comprehensive name search and business entity filing
Employer Identification number (EIN)
Seller's Permit (Resale Number)
1 yr. registered agent service (out of state filing)
Business Email address
Domain name with privacy
Compliance notifications and advice
One-time fee Package Includes:
Articles of Organization
Certificate of Good Standing
Express processing 2-day turnaround time
Comprehensive name search and business entity filing
Employer Identification number (EIN)
Seller's Permit (Resale Number)
1 yr. registered agent service (out of state filing)
Business Email address
Domain name with privacy
Compliance notifications and advice
One-time fee Package Includes:
Articles of Organization
Certificate of Good Standing
Express processing 2-day turnaround time
Comprehensive name search and business entity filing
Employer Identification number (EIN)
Seller's Permit (Resale Number)
1 yr. registered agent service (out of state filing)
Business Email address
Domain name with privacy
Compliance notifications and advice
How to Form a Corporation and an LLC: A Comprehensive Guide
Introduction
Starting a business involves many decisions, including choosing the right legal structure. Two popular options are forming a corporation or a limited liability company (LLC). This guide will walk you through the steps to form each type of entity and highlight the key differences between them.
What is a Corporation?
A corporation is a legal entity that is separate from its owners. It can own property, enter into contracts, and be sued in its own name. Corporations are typically more complex and expensive to set up and maintain than other business structures.
What is an LLC?
A limited liability company (LLC) is a flexible business structure that combines the benefits of a corporation and a partnership. LLCs offer limited liability protection to their owners, known as members, while allowing for pass-through taxation.
Steps to Form a Corporation
Choose a Business Name: Ensure the name is unique and complies with your state’s naming requirements.
Appoint Directors: Select the initial directors who will oversee the corporation.
File Articles of Incorporation: Submit the necessary documents to your state’s business filing office.
Create Corporate Bylaws: Draft bylaws that outline the corporation’s operating procedures.
Hold an Initial Board Meeting: Conduct the first meeting to adopt bylaws, appoint officers, and issue stock.
Obtain Necessary Licenses and Permits: Ensure compliance with local, state, and federal regulations.
Register for Taxes: Apply for an Employer Identification Number (EIN) and register for state and local taxes.
Steps to Form an LLC
1. Choose a Business Name: Ensure the name is unique and complies with your state’s naming requirements.
2. File Articles of Organization: Submit the necessary documents to your state’s business filing office.
3. Create an Operating Agreement: Draft an agreement that outlines the LLC’s management structure and operating procedures.
4. Obtain Necessary Licenses and Permits: Ensure compliance with local, state, and federal regulations.
5. Register for Taxes: Apply for an Employer Identification Number (EIN) and register for state and local taxes.
Key Differences Between a Corporation and an LLC
Management Structure: Corporations have a formal structure with a board of directors and officers, while LLCs have a more flexible management structure.
Taxation: Corporations are subject to double taxation (corporate and individual), whereas LLCs benefit from pass-through taxation.
Compliance Requirements: Corporations have more stringent record-keeping and reporting requirements compared to LLCs.
Conclusion
Choosing between a corporation and an LLC depends on your business goals, the level of liability protection you need, and your preferred management structure. Both entities offer unique advantages, so it’s essential to carefully consider your options before making a decision.