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S-Corp

S-Corp Basics

S-Corporations are not technically a distinct entity type. Rather, the term “S-Corp” refers to a type of tax treatment available to corporations and LLCs that meet certain requirements. When a corporation makes an S-Corp election, it will avoid double taxation, which is often viewed as the primary disadvantage of creating a corporation (i.e. a C-Corp). Instead, the corporation will enjoy pass-through taxation. In the context of LLCs, the choice to be taxed as an S-Corp can allow the owners to lower their tax liability in certain situations. To elect to be taxed as an S-Corp, a company must meet strict requirements. These requirements, as well as a brief overview of how an S-Corp election impacts the 4 factors to consider when choosing a business entity, are described below. Read more

C-Corp

C-Corp Basics

The C-Corporation is the default corporate form, meaning when you incorporate your enterprise as a corporation, you are automatically classified as a C-Corp in the state where you incorporate. The C-Corp is generally considered the preferred entity type for businesses that seek funding from sources such as angel investors and venture capitalists. But the tax treatment of C-Corps is often considered the main disadvantage of forming a C-Corp. Additionally, there are significant formalities that must be followed for C-Corps. Below is a description of the C-Corp form in terms of the 4 factors to consider when choosing a business entity. We encourage you to read this article if you are deciding whether you should incorporate your business in Delaware or California.  Read more

Limited liability company

Limited Liability Company Basics

The limited liability company, or LLC, is a relatively recent addition to the menu of options available when choosing a legal entity. It is a hybrid between a partnership and a corporation, designed to combine the benefits of both. In short, an LLC enjoys the taxation and governance advantages of partnerships while also providing limited liability to the owners similar to a corporation. Below is a description of how an LLC fares in the 4 factors to consider when choosing a business entity. Read more

Choosing a Business Entity

Factors to Consider When Choosing a Business Entity

We are often asked “what is the best entity type?” There really is no one-size-fits-all answer because each entity may be more or less beneficial for any given enterprise. Rather, it is important for entrepreneurs to consider various factors when choosing a business entity. Read more

Incorporate a Business

Why Incorporate a Business as a Corporation or LLC?

Although it is possible to conduct business as a sole proprietor or general partnership without any formal incorporation, it is generally a good idea to incorporate a business as a corporation or LLC. There are a few reasons why creation of a corporation or LLC is important.   Read more