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Hobbypreneurs - Incorporate Your Business and Make it Official
By DailyWorth Team Tuesday February 23, 2010|
($) dailyworth sponsored post
|
Understanding Corporate Structures Should I incorporate or form an LLC? That's the question. Both offer similar benefits, but there are also some key differences that you should understand and consider when choosing the right structure for your business.
CorpNet™ can help.
Founded by entrepreneur Nellie Akalp, CorpNet can help you complete the process saving you time and money with service that is fast, reliable, affordable, and 100% guaranteed. Nelli has helped more than 100,000 small business owners and entrepreneurs get their start.
Here's a brief corporation vs. LLC comparison:
They Have Some Things In Common
- Limited personal liability
Personal assets—homes, cars, savings and investments—are protected in case the business runs into problems. - Ability to raise capital
The business can borrow money and sell equity to raise capital. That's a good thing. - Unlimited duration
Both structures will last as long as the pyramids at Giza, unless they're dissolved.
- Tax flexibility and profit distribution
One advantage of LLCs is that they are not taxed as a separate entity. Business income or losses are reported on the owner's individual tax return. This is similar to an S Corporation, but different from a C Corporation, which is a separate taxable entity. - Corporate structure & formalities
An LLC generally requires fewer corporate formalities than a corporation. LLCs don't have to hold separate meetings for the board of directors or shareholders, or periodic directors meetings with minutes. In other words, it's simplicity without the corporate bureaucracy. - State filings
LLCs do still require state filings, though they're different from those for corporations. Articles of Organization must be filed with the Secretary of State to form an LLC, and the LLC's members must enter into an Operating Agreement that governs how it will be operated. - Number of Owners
Both Corporations and LLCs can have multiple owners, but there are differences in how many. LLCs and C Corporations can have an unlimited number, while S Corporations are limited to 100 Shareholders.
When you're ready to incorporate or form an LLC, CorpNet packages start from just $49 Plus state filing fees. This is substantially lower than what an attorney might charge for the same service. Relative to other online document filing services, CorpNet stands out above the rest.
Call for a free quote 1-888-449-2638, visit www.CorpNet.com or contact Nellie directly at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Comments
(7)
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Written by Kelly, February 24, 2010
Daily worth, I really enjoy your site and I know you need advertising, but how could you sent us a something that charges to do things that are free? $49.00 for an EIN - it's free and takes about 10 mintues online. We should be encouraging "hobbypreneurs" to do these things themselves. As someone who sells my art, it is important for me to understand these things, not to pay someone to do it for me.
Written by Laura, February 24, 2010
Great information. I'm going to have to look up the laws where I live (France). I am a sole proprietor for now, but I like the idea of limited liability.
Written by Jessi, February 24, 2010
I would have to agree with Kelly's sentiments. I do not mind ads, as I understand this services has to pay for itself somehow. However, I do mind advertisements being passed off as honest, sound advice. I am going to unsubscribe, as I no longer feel these e-mails have the reader's best interest in mind.
Written by Amanda Steinberg (DailyWorth founder), February 24, 2010
Dear Kelly,
Thank you for your honest feedback. While you are absolutely correct on the fact that you can obtain your own EIN for free by going onto the IRS website and spending about 10 minutes to obtain an EIN, there are many small business owners that do not have the time, nor understand what an EIN is and they may not even know where to obtain it. Stuff like this can be intimidating to a new business owner.
Believe it or not, as an entrepreneur, I don't always advocate the DIY approach. It all depends on the situation, the entrepreneur's experience with such filings and the amount of start up capital that she has. Everything takes time and costs money. In some cases, DIY is best. In others, paying a nominal fee to have a task handled is very worth the time so that you can spend you time elsewhere. Too often we think as entrepreneurs that we should do everything: sales, production, bookkeeping, document filing. In reality, I think that can -MUST DIY- approach can really hamper our growth. I personally take on the - must delegate everything I can afford to delegate- approach and that works best for me. I also have capital.
I totally stand behind this ad, Nellie and her company. I hope that you can see my opinion here as valid.
And finally, might I add -- how great that we can have a public forum to discuss our advertisers. I encourage this type of dialog.
Best,
Amanda
Thank you for your honest feedback. While you are absolutely correct on the fact that you can obtain your own EIN for free by going onto the IRS website and spending about 10 minutes to obtain an EIN, there are many small business owners that do not have the time, nor understand what an EIN is and they may not even know where to obtain it. Stuff like this can be intimidating to a new business owner.
Believe it or not, as an entrepreneur, I don't always advocate the DIY approach. It all depends on the situation, the entrepreneur's experience with such filings and the amount of start up capital that she has. Everything takes time and costs money. In some cases, DIY is best. In others, paying a nominal fee to have a task handled is very worth the time so that you can spend you time elsewhere. Too often we think as entrepreneurs that we should do everything: sales, production, bookkeeping, document filing. In reality, I think that can -MUST DIY- approach can really hamper our growth. I personally take on the - must delegate everything I can afford to delegate- approach and that works best for me. I also have capital.
I totally stand behind this ad, Nellie and her company. I hope that you can see my opinion here as valid.
And finally, might I add -- how great that we can have a public forum to discuss our advertisers. I encourage this type of dialog.
Best,
Amanda
Written by Amanda Steinberg (DailyWorth founder), February 24, 2010
Sorry Jessi - I meant to address your post as well. I DO stand behind Nellie and this service. I'm so sorry we lost your subscribership. Best of luck to you and wishing you much success.
Marie, Laura -- GREAT!
Marie, Laura -- GREAT!
Written by Jeannene Langford, February 26, 2010
At first hit I just thought this was advertising. Where is the article?
While I believe this is might be a great service for companies getting started, I would encourage readers to do their due diligence by investigating their options. Meet with an attorney for an initial visit and understand what you are getting and are not getting by forming a legal structure this way. Talk to others in similar businesses to find out first hand what mistakes they made. The easiest solution in the beginning is not always good for the long haul. Make sure your legal status entertains your exit strategy or can be switched to meet it for optimal results.
While I believe this is might be a great service for companies getting started, I would encourage readers to do their due diligence by investigating their options. Meet with an attorney for an initial visit and understand what you are getting and are not getting by forming a legal structure this way. Talk to others in similar businesses to find out first hand what mistakes they made. The easiest solution in the beginning is not always good for the long haul. Make sure your legal status entertains your exit strategy or can be switched to meet it for optimal results.
