Company Registration
Forming a company allows the business owner to separate and protect their personal assets in the event of a lawsuit or claims against a business entity activities. In the United States, there are two types of companies: a corporation (INC) or a Limited Liability Company (LLC). Each type of company has different types of taxation.
LIMITED LIABILITY COMPANY (LLC)
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C Corporation
C corporation is a separate legal entity, so its owners or shareholders have no personal liability for the company’s obligations. The corporation is taxed on its income, and shareholders also must pay taxes on any dividends or income they receive.
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S Corporation
S corporation is a separate legal entity, but it differs in that while shareholders are taxed on income they receive from the company, the corporation itself is not taxed. However, a company must meet strict legal requirements to qualify as an S corporation. Both C and S corporations offer good asset protection.
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Partnership
Members report income and deductions related to the business on their individual tax returns
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Sole-Member
Disregarded as an entity separate from its owner.
CORPORATION (Inc, Corp.)
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C Corporation
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S Corporation
When choosing a type of company, it is very important to understand the difference in legal and tax relations, because each has its own advantages and disadvantages, and also makes the right choice of the type of taxation. Wrong choice structure will deprive you of many tax and other benefits.
The type of company depends on the status of the business owner, projected income, and investment needs. We'll take a look at your specific situation.
We will discuss the potential risks and obligations of your business and help choose the option that suits you.
