If you need help with any of the below items, then you qualify for our Entity Establishment program.
- Legal Entity Filings
- EIN Filings
- S-Corp Elections
- Business Plans
- Registered Agent Services
Common Types of Business Entities
LLCs provide limited liability protection to their owners, like corporations, so owners are typically not personally responsible for business debts and liabilities. They also provide pass-through taxation, like partnerships, LLC income is reported on the owners’ personal tax returns and any tax due is paid at the individual level.
C corporations are more flexible than S corporations in terms of the number of owners (shareholders) they can have and who can be an owner. That is one reason why C corps are the business type of choice for venture capitalists when they provide funding to a business
Sole proprietorships do not face the same ongoing formalities and requirements that corporations or LLCs face. There are no annual reports to file with and fees to pay to the state, no required annual meetings, etc. However, depending on the type of business, as a sole proprietor, you will still need business licenses and permits.
Electing S corporation status with the IRS allows for pass-through taxation of the corporation’s profits. S corps must still file corporate tax returns, but they do not pay taxes at the corporate level. The S corporation’s profits are passed-through to the individual tax returns of the shareholders, and taxes are paid on those profits at the individual tax rate.