| After deciding what type of products or services you | | | | Company and a S Corp are almost identical, the |
| are going to offer, the most important decision you will | | | | Limited Liability( LLC) can offer small and home |
| make in start a new business is the type of business | | | | business owners many advantages over a |
| structure to form. You will be faced with deciding | | | | Corporation. A Limited Liability Company (LLC) is much |
| whether to form a General Partnership, S-Corporation, | | | | easier to form. Requirements for forming a corporation |
| C-Corporation, Venture Capital or Limited Liability | | | | and filing the necessary documents with the IRS to |
| Company. If you are starting a small or home business | | | | have it be taxed as an S corporation is a complex and |
| a Limited Liability Company or LLC is your best choice | | | | time-consuming process. With a LLC you simply file a |
| hands down. | | | | Certificate of Formation or Articles of Organization |
| A Limited Liability Company (LLC) provides you best | | | | with proper state agency, in most states it is the |
| of all Worlds, in that it is a type of business ownership | | | | Secretary of States. Unless you choice to do |
| combining several features of corporation and | | | | otherwise, single-member Limited Liability Companies |
| partnership structures. Unlike a general partnership, | | | | are automatically taxed as sole proprietors by the IRS. |
| owners of an Limited Liability (LLC) have limited liability. | | | | Limited Liability with multiple owners are automatically |
| Which mean an owner of LLC can not lose more than | | | | taxed as partnerships. Which is much different from |
| the amount he or she has invested in the company. | | | | the Corporation which must file IRS Form 2553, |
| Thus, the owner is not personally responsible for the | | | | "Election by a Small Business Corporation," within 75 |
| debts and obligations of the company in the event | | | | days of the corporation's formation to obtain |
| they are not fulfilled. And, unlike a limited partnership, | | | | pass-through status as an S corporation. |
| owners of a Limited Liability Company (LLC) do not | | | | Other attractive benefits of Limited Liabilities |
| lose their limited liability by actively participating in | | | | Companies (LLC). In contrasted to Corporations, LLCs |
| management of the business. | | | | are not required to hold annual meetings or keep |
| A Limited Liability Company (LLC) also have many | | | | formal meeting minutes. Owners of a Limited Liability |
| advantages over the most popular business structure, | | | | Companies do not have to issue stocks to the |
| the Corporation. The Limited Liability Company (LLC) | | | | owners. There is no limit to the number of members |
| and the S Corporation both have the benefit of | | | | who may have an ownership interest in the company. |
| pass-through taxation. This means that owners in the | | | | There are some draw backs to an LLC but as it |
| company report their share of profits and losses on | | | | relates to small or home business owner they are so |
| each owner's individual tax return. The IRS assesses | | | | insignificant they are no worth mentioning. It clear that |
| no separate tax on the company itself. However, in | | | | an Limited Liability Company is a small business |
| the C Corporation "double taxation" occurs when the | | | | owner's dream. It provide the protection of corporation, |
| C corporation first pays taxes on its own earnings and | | | | while maintaining the simplicity of a partnership. With |
| then the shareholders or owners pay income taxes on | | | | LLC you will have more time to focus on the important |
| the dividends they receive. | | | | details of your business and not spending precious time |
| Even though the tax status of a Limited Liability | | | | pushing useless paper. |