One of the first decisions you'll make when starting a new business is choosing an entity type.
You can take your business to the next level by simplifying employee payments, tax filing and
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There are multiple business entity types which will benefit to your business, Incorporating a
business allows you to establish credibility and professionalism.
Limited Liability Company
Creating an LLC may not be the cheapest choice to make as a
small business owner. Many benefits that are attached to being a limited liability company
have made this formation a significant achievement for most business owners. Your LLC will
enjoy pass-through taxation, but you also get to benefit from the flexibility of membership
and company management.
A Limited Liability Company (LLC) is a business structure allowed by state statute. Each
state may use different regulations, you should check with your state if you are interested
in starting a Limited Liability Company.
IRS Limited Liabilty
S Corporations
that elect to pass corporate income, losses, deductions, and credits through to their shareholders
for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses
on their personal tax returns and are assessed tax at their individual income tax rates.
To qualify for S corporation status, the corporation must meet certain requirements.
In order to become an S corporation, the corporation must submit Form 2553, Election by a Small Business
Corporation signed by all the shareholders.
IRS S Corporations
Corporations
In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's
capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable
income. A corporation can also take special deductions.
For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity. A corporation
conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders.
Owners / shareholders have limited personal liability for business related debts.
IRS C Corporations
Non-profit Corporations
A corporation formed for a charitable, educational, religious, literary, or scientific purpose.
Non-profit status may make an organization eligible for certain benefits, such as state sales,
property, and income tax exemptions.
To be tax exempt, most organizations must apply for recognition of exemption from the Internal
Revenue Service to obtain a ruling or determination letter recognizing tax exemption.
If you intend to apply to the IRS for recognition of federal tax-exempt status as a charitable
organization under section 501(c)(3) of the Internal Revenue Code, your articles of incorporation
must contain certain provisions.
IRS Non-profit Corp.
So, if you are looking to form any type of company, You can click here to Register with us first.