| As a small business owner, you might choose the | | | | This is not the case with an S-Corporation, which |
| easy and economical method to incorporate online. | | | | requires the owner to be a natural U.S. citizen or a |
| There are several online services available that can | | | | legal resident; no corporation or person living outside |
| help with incorporating your business in one state or | | | | the U.S. can own an S-Corporation here. The |
| several. There is some paperwork involved in each | | | | members of the LLC can decide on their own how to |
| state in which you want to conduct business, as well | | | | divide up the profits or losses of the business, unlike |
| as fees that must be paid, and it is helpful to make | | | | other forms of incorporation. |
| sure all aspects of incorporation are properly handled | | | | A limited liability corporation may be required to pay |
| by making use of an incorporating online company | | | | Medicare and Social Security taxes on all of the |
| devoted to providing this service. One type of | | | | business profits that the business makes. In terms of |
| corporation that appeals to many small business | | | | these types of taxes, if your business deals with the |
| owners is the limited liability company. Here are some | | | | areas of engineering and design, the law or health |
| points you will need to consider when forming an such | | | | care, you will likely need to consult with an accountant |
| a corporate structure. | | | | or tax adviser in order to determine if this business |
| Several small business owners choose to form an | | | | structure will adequately meet your specific business's |
| LLC when they go about incorporating their business. | | | | needs. |
| The limited liability company, is the easiest to form in | | | | Each state has slightly differing requirements |
| terms of the paperwork required to be submitted to | | | | concerning the formation of an LLC. If you are a |
| the state, as well as ongoing business records that | | | | licensed professional wanted to incorporate in |
| must be kept. Because the rules governing such a | | | | California, for example, California law forbids limited |
| business entity do not require annual meetings, there is | | | | liability companies from providing professional services |
| no record keeping involved for this business aspect, | | | | as an individual. If you are not a licensed professional, |
| which is unlike other corporation formats that require | | | | you may form an LLC in California, but you will be |
| such records. | | | | required to pay an $800 tax for the privilege of doing |
| A LLC can be owned and operated by a citizen of | | | | business in the state, plus an extra annual LLC fee that |
| the United States, a resident alien or another person or | | | | is based on a percentage of all of your total income |
| corporate entity outside or inside the United States. | | | | for the year from all sources. |