Corporate
Structures
(See Comparison Chart Below)
Incorporating or Forming an LLC
The benefits of
forming a corporation or LLC can
include: protecting assets
through
liability
protection
, tax savings,
reducing chances
of a tax audit,
and
developing a
professional identity
with customers.
We simplify the filing process, saving you time and money, which provides you with the benefits of incorporation or forming an LLC that you can enjoy today!
LLC's Are
By Far The Most Popular
And
Easiest to Operate
-
Forming an LLC is a big step toward your success and the success of your business.
Considered the key benefits of forming an LLC:
-
Protecting your personal assets through liability protection
-
Deducting certain expenses
-
Reducing audit risk
-
Establishing credibility with your customers
Why
choose an LLC over a corporation?
The LLC structure is generally simpler to
maintain. For example, there is usually no
need to have annual meetings or update
minutes with an LLC. The LLC also has
greater flexibility in economic and
management structure.
You could file all the necessary incorporation documents yourself. However, when you consider the time involved for filing, administering, and maintaining all the documents necessary to keep your business running legitimately... why would you? Let us help you get it done, so you can get back to business!
Our business filing experts will save you time and hassle when you use our document filing services to take this next step.
We can help you form an LLC affordably.
Lawyers charge, on an average, over $200 per hour. With our document filing services, you'll know exactly what you are getting, and how much it costs from the very beginning.
Once you decide to
form an LLC, simply fill out our
online application
and we do the rest.
Liability Protection
What Do You Have
to Lose?
As a sole proprietor, your liability for business debt is unlimited. Personal assets such as your home, personal bank accounts, and other valued assets may be at risk.
What does this mean? It means that if your business experiences severe financial difficulties, creditors can take away your personal property such as your home, retirement savings, or any other asset you or your spouse own.
In our increasingly litigious society, it is becoming ever more important to limit your exposure and protect yourself from liability.
Incorporating your business draws a firm line between your personal and business assets, helping protect your personal assets from risks or debts associated with running your business.
Tax
Savings:
Self Employment
Taxes and
Deductions
If you are operating as a sole proprietor, you will be required to pay self-employment tax on your profit, currently at 15.3%.
If you incorporate your business, only the salary you pay yourself is subject to self-employment tax. Depending on your situation, you may be able to save as much as 50% on your tax bill.
Another
Tax Benefit Of LLC's:
Reduced Chance
of Tax Audit
Sole proprietors tend to be more likely to file incorrect returns (many are self-prepared), and tend to under report revenue or over report deductions.
For these reasons, the IRS has audited a much higher percentage of sole proprietor tax filings than corporate/LLC filings in recent years.
Build
Credibility:
Develop Your
Professional
Identity
Distinguishing yourself from the competition by establishing a professional identity helps increase credibility with your associates and customers.
Most businesses choose to incorporate to prove their legitimacy to both customers and suppliers. Adding "INC." or "LLC" after your business name gives you the credibility and professionalism that many customers are looking for.
Company Structure Comparison Chart
| Entity Type | Main Advantages | Main Drawbacks |
|---|---|---|
|
Regular
C-Corporation |
Owners have
limited
personal
liability
for business
debts. Fringe benefits can be deducted as business expense. Owners can split corporate profit among owners and corporation, paying lower overall tax rate. |
More
expensive to
create than
partnership
or sole
proprietorship. Paperwork can seem burdensome to some owners. Separate taxable entity. |
| S-Corporation |
Owners have
limited
personal
liability
for business
debts. Owners report their share of corporate profit or loss on their personal tax returns. Owners can use corporate loss to offset income from other sources. |
More
expensive to
create than
partnership
or sole
proprietorship. More paperwork than for a limited liability company which offers similar advantages. Income must be allocated to owners according to their ownership interests. Fringe benefits limited for owners who own more than 2% of shares |
| Professional Corporation | Owners have no personal liability for malpractice of other owners. |
More
expensive to
create than
partnership
or sole
proprietorship. Paperwork can seem burdensome to some owners. All owners must belong to the same profession. |
| Non-Profit Corporation |
Corporation
doesn't pay
income
taxes. Contributions to charitable corporation are tax-deductible. Fringe benefits can be deducted as business expense. |
Full tax
advantages
available
only to
groups
organized
for
charitable,
scientific,
educational,
literary or
religious
purposes. Property transferred to corporation stays there; if corporation ends, property must go to another nonprofit. |
| Limited Liability Company |
Combines a
corporation's
protection
from
personal
liability
for business
debts and
pass-through
tax
structure of
a
partnership. Significantly easier to maintain than a corporation. IRS rules now allow LLCs to choose between being taxed as partnership or corporation. |
More
expensive to
create than
partnership
or sole
proprietorship. State laws for creating LLCs may not reflect latest federal tax changes. |
| Professional Limited Liability Company |
Same
advantages
as a regular
limited
liability
company. Gives state licensed professionals a way to enjoy those advantages. |
Same as for
a regular
limited
liability
company. Members must all belong to the same profession. |
| Limited Liability Partnership |
Mostly of
interest to
partners in
old line
professions
such as law,
medicine and
accounting. Owners (partners) aren't personally liable for the malpractice of other partners. Owners report their share of profit or loss on their personal tax returns. |
Unlike a LLC
or a
professional
limited
liability
company,
owners
(partners)
remain
personally
liable for
many types
of
obligations
owed to
business
creditors,
lenders and
landlords. Not available in all states. Often limited to a short list of professions. |
| Sole Proprietorship |
Simple and
inexpensive
to create
and operate. Owner reports profit or loss on his or her personal tax return. |
Owner personally liable for business debts. |
| General Partnership |
Simple and
inexpensive
to create
and operate. Owner (partners) reports profit or loss on his or her personal tax returns. |
Owner (partners) personally liable for business debts. |
| Limited Partnership |
Limited
partners
have limited
personal
liability
for business
debts as
long as they
don't
participate
in
management. General partners can raise cash without involving outside investors in management of business. |
General
partners
personally
liable for
business
debts. More expensive to create than general partnership. Suitable mainly for companies that invest in real estate. |
Once you decide to form an LLC
simply fill out our
online application
and we do the rest.