I thought it would be a good idea here to tell you about corporations. Here you can see the pros and the cons. Feel free to investigate on your own using the Internet! There is so much information and you can make an inform choice!
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Choosing a Structure for Your Business
Small business owners should consider the advantages of both a corporation and a Limited Liability Company (LLC) when forming a new company. Selecting the right structure can help you maximize your chances for success. Though corporations and LLCs can both help protect personal assets from business debts, they differ in the following respects:
Advantages of a Corporation
May issue shares of stock to attract investors
Corporate income splitting may help lower overall tax liability
Advantages of an LLC
Has no limit to the number of owners
Owners can report profit and loss on their individual tax returns
Not required to hold annual meetings or record minutes
Disadvantages of a Corporation
Double taxation of corporate profits and shareholder dividends
Must hold annual meetings and record minutes
S Corporations have restrictions on number of owners
Disadvantages of an LLC
Cannot engage in corporate income splitting to lower tax liability
Cannot issue stock
Note: LLC owners can elect for the IRS to tax the LLC as a sole proprietorship, partnership, C Corporation, or S Corporation. Owners make this election through the IRS after the company forms with the state.
Sharon LaMothe
LaMothe Services, LLC
http://lamotheservices.com/
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