Should I form a business entity?
Forming a business entity, such as a corporation or LLC makes it clear that you are a professional business. Entity formation may also be customary in the industry in which you plan to conduct business and other companies may require it in order to conduct business. If your business is not properly incorporated, the owners may be subject to personal liability and creditors may be able to seize personal assets of the owners.
How are Corporations and limited liability companies similar?
Corporations and LLCs are considered separate legal entities from shareholders (corporations) and members (LLCs).
What are the differences between Corporations and limited liability companies?
Corporations require more maintenance and paperwork than LLCs and they are also taxed differently.
Should I incorporate my business or form an LLC?
Corporations offer personal liability protection, tax savings and increased opportunities for raising capital. If your entity will have many investors a corporation may be your best route. LLC’s offer the same personal liability protection as a corporation but with fewer corporate formalities. If you have fewer investors and you will be a small business owner, an LLC may be the practical decision for you.
What are the tax advantages for a corporation or LLC?
LLC’s offer great tax flexibility as members can choose to be taxed as either a traditional corporation or as a “pass-through” entity. Regular corporations (C-corporations) are taxes as separate entities at the corporate tax rate and any corporate profits that are distributed to shareholders through dividends are taxes through the shareholders’ personal tax returns. S corporations have more limitations and shareholders are taxes on their personal tax returns
The Law Offices of Gene H. Chien provides a wide variety of legal services regarding entity formation including:
– Advising the best entity formation to suit your needs: Sole proprietorship, S Corporation, C corporation, LLC (Limited Liability Company), Limited Partnership, General Partnership
– Completing and filing of paperwork: Entity name reservation, charter document filing, and getting an EIN (Employer Identification) number
– Drafting necessary entity formation documents including: Bylaws, shareholder agreements, operating agreements, buy-sell agreements, employment agreements, issuance of stock and membership certificates
– Advising on corporate board formation; operating a corporate board, and conducting shareholder meetings
– Advising on insurance and licensing issues
– Providing legal representation after the entity is successfully formed
To schedule an appointment with an experienced entity formation attorney, contact The Law Offices of Gene H. Chien today to discuss your options.