by Aaron Scott Young
What are your long-term goals? Are you going to need to raise capital? Will you have partners? How are you going to exit the business? These are just a few things you need to consider.
Corporations and LLC’s vary in management, benefits and taxes. Comparing your options is important in making the right decision.
Corporations and LLC’s offer liability protection, tax savings, credibility, legitimacy, estate planning, and numerous other benefits, but they are not created equal.
If you’re getting ready to start a business, have personal assets to protect or are already in business, then the time to incorporate or form an LLC is now.
If the name you want is similar to another business name or includes restrictive words, then the state may reject it. Try our company name search to secure your desired company name.
Most people will incorporate in the state in which they do business. Where you incorporate is where you will need to meet the legal requirements for operating.
C-Corporations are taxed at their own tax rate.
S-Corporations are taxed at the individual share-holders’ tax rates
LLCs can be taxed four different ways: as Sole Proprietorship, a Partnership, a Corporation or S-Corporation.
Making the wrong choice can cost you extra fees, additional taxes, reduced benefits and loss of liability protection.
Ready to get started with your company formation?