How You Can Benefit from a Corporation or LLC

Regardless of their size, all businesses can benefit from incorporating. Advantages of forming a corporation or Limited Liability Company (LLC) include:

• Personal asset protection. Both corporations and LLCs allow owners to separate and protect their personal assets. In a properly structured and managed company, owners should have limited liability for business debts and obligations.
  
  
• Additional credibility. Adding "Inc." or "LLC" after your business name can add instant authority. Consumers, vendors, and partners may prefer to do business with an incorporated company.
  
  
• Name protection. In most states, other businesses may not file your exact corporate or LLC name in the same state.
  
  
• Perpetual existence. Corporations and LLCs continue to exist, even if ownership or management changes. Sole proprietorships and partnerships just end if an owner dies or leaves the business.
  
  
• Tax flexibility. Though profit and loss typically pass through an LLC and get reported on the personal income tax returns of owners, an LLC can also elect to be taxed as a corporation. Likewise, a corporation can avoid double taxation of corporate profits and dividends by electing Subchapter S tax status.
  
  
• Deductible expenses. Both corporations and LLCs may deduct normal business expenses, like salaries, before they allocate income to owners.

Should My Business Incorporate or Form an LLC?

Corporations and LLCs are both separate legal entities (business structures) that enjoy certain protections under the law and important benefits. Most people form a legal business structure to safeguard their personal assets.

Incorporating, or forming a Limited Liability Company (LLC), allows you to conduct your business without worrying that you might lose your home, car, or personal savings because of a business liability.

Decide Which Business Structure is Right for You

Quickly view the differences between corporations and LLCs in our Business Comparison Chart.  Or, read more details about all business structures to decide what's right for you.

Call Us Today!

Call today and see how we can save you time and money.

Phone:  (727) 842-5213 - email:  fcaccounting@verizon.net

Start Protecting Your Assets Now

First Choice Accounting can help you form your new S Corporation or LLC in any state or the District of Columbia.

How Can You Benefit from An S-Corporation:

• Limited liability for directors, officers, shareholders, and employees
  
  
• Owners can report their share of profit and loss on their individual tax returns
  
  
• Attract investors through the sale of shares of stock
  
  
• Perpetual existence, even if an owner leaves the business

How Can You Benefit from A LLC:

This business structure has many advantages, including:

• Owners have limited liability for business debts and obligations.
  
  
• Owners can report their share of profit and loss on their individual tax returns without filing a separate corporate tax return.
  
  
• Owners do not need to be U.S. citizens or permanent residents.
  
  
• LLCs do not need to hold annual meetings or record meeting minutes (though we recommend it).
  
  
• LLCs can be owned by individuals or other companies.