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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.
Both structures will last as long as the pyramids at Giza, unless they're dissolved.
And Some Key Differences
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.
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 NAkalp@corpnet.com.