Background Information When Incorporating Your Business
Your personal assets will be protected if you incorporate your business, aside from creating tax advantages and others. But note that it is only when you do things right that you can get these benefits, and the way to go is to get advice from experts who have the knowledge how to consider your assets, the laws of the state you belong and know the reasons why you are incorporating.
To incorporate, you can start by getting the help of experts like Corporate Direct. This service company knows about s corporation definition and s corporation thus knowledgeable in incorporating.
Through this kind of service agent, you will be guided how to protect best your assets through incorporating. They would conduct first a name check to see if the business name you have chosen is still available in the state where you will form your corporation. Another service is that they will file the paperwork with the Secretary of State in order to incorporate your business. The receipt of your documents and sending of these complete corporation package will be done by this agent once you are registered with the state, plus they will give you a free year of services being your registered agent.
To be in the business world, there are two terms that you should have at least some knowledge and these are about limited liability company or LLC and a C corporation. Corporation and llc have their differences, and it is necessary to be educated in these terms to help you learn and understand when you converse about the business, plus your clientele will be assured of your competency in the field you are in. These conditions have both structures, but have different traits that would allow business people to know and decide which is most suitable for their kind of business. Know that both have an indefinite term of life, however, there are more distinguishing traits in LLCs.
LLC or better known as limited liability company, is a specific kind of business entity that has both personal liability protection of a corporation together with the tax benefit of a partnership. The structure of this type of business entity is such that it offers protection to an owner of the company, thus is suited for small businesses with only a few stockholders.
The exact opposite of LLC is the C corporation where the entity is taxed separately from its business owners. This type is more suited to medium and large sized corporations that are owned by its shareholders.
Another difference between a C corporation and LLC is that the C corporation uses a double taxation while LLC uses a single taxation.