TopConsumerReviews.com Best Company Incorporation
      January 17, 2019

Home  >  Company Incorporation  >  Articles

Best Company

Incorporation

  1. Rocket Lawyer
  2. Corp Net
  3. My Company Works
  4. Legal Zoom
  5. My Corporation
  6. Harbor Compliance
  7. Biz Filings
  8. Incorporate
  9. Corporate Creations
  10. Find Legal Forms

Compare Products

  • Select any 2 companies in our reviews to compare them head-to-head!
  • Compare

Your Information Is Secure
Online Legal Protection For Your Business Newsletter

Latest Reviews

Bunk Beds

Charm Bracelets

Dating Sites

Eczema

Flower Delivery

Fruit Baskets

Guitar Lessons

Hair Loss

Menopause Relief

Online Stock Brokers

Watches

 

Related Articles

What are the Main Differences between an LLC and an S-Corp?

What Is a C-Corporation?

What Is an LLC?

What Is an S-Corp?

Which Type of Company Incorporation is Right for You?

 

Top Consumer Reviews Articles

TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

What are the Main Differences between an LLC and an S-Corp?

Perhaps you've already decided to shift out of sole proprietorship or general partnership status. Friends, acquaintances or (bitter?) experience itself might have alerted you to the personal financial risks of sole proprietor or partnership status in business. Advice might come from all directions: From well-meaning friends, acquaintances, other business owners, even relatives...with no business background! The limited liability corporation, or LLC, and the S-corp status may have been suggested to you by one or more interested parties. Thoroughly evaluating the pluses and minuses of the two types of structure is critical to making an intelligent decision.

So what are the main differences between an LLC and an S-Corp?

First of all, both structures are designed to limit personal liability relative to taxes and business debt.

An LLC, or limited liability corporation, is much more like a general partnership or sole proprietorship than a corporation. The owners declare the profits from the business on their own tax returns. No corporate return is required.

An S-Corp is a corporate structure that the Internal Revenue Service assigns a special status. "Subchapter S" status allows a corporation to avoid filing a corporate tax return, reporting instead any profits or losses on the personal return(s) of the owner(s). Otherwise, establishing an S-corporation means jumping through all the administrative hoops that federal, state and local governments require of C-corporations.

An S-Corp must be registered with state, and possibly, local authorities. Filing articles of incorporation and establishing by-laws are necessary steps. Shareholders have to elect a board of directors. Regular meetings must be calendared for both directors and shareholders, and minutes from these meetings must be recorded. In addition, like a C-corporation, an S-corporation must comply with any state or local business licensing requirements. Compliance with all these regulations usually means retaining legal counsel, something an LLC may not need to do to set up shop.

Neither the LLC nor the S-corp structure requires filing a business tax return. Both LLC owner-members and S-corp owners declare business income on their personal returns at tax-filing time.

As a distinction, S-corp owners are also shareholders, and shareholders who work for the company are required to pay themselves a salary that is in line with industry salaries for similar work. The owner pays income tax on that salary, but may or may not owe any taxes on the company's profits. On the other hand, LLC owners pay self-employment tax on 100 percent of the company's net income. Needless to say, this can create a burden.

Also on the downside for the latter structure, LLC means not only limited liability but limited life: If one of the owners dies -- or even goes bankrupt -- the LLC is automatically dissolved. This can be disruptive to business, especially for longstanding clients and employees. An S-corp, as a corporation, quite literally has a life of its own... legally speaking. The vicissitudes of mortality create no obstacle to the operation of an S-corp.

Taking a good, long look at the pros and cons of the S-corp and the LLC is crucial. Seeking legal advice on which structure best suits your circumstances is good practice.

CLPS Incorporation's Blockchain Passes University Testing

SHANGHAI, Jan. 16, 2019 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") CLPS, +7.95% a leading information technology ("IT") consulting and solutions service provider focusing on the bank...

Published:  Wed, 16 Jan 2019 03:30:00 GMT



From Blockchain to Microgrids: Technologies That Will Revolutionise Energy

However, long-term success requires a rethink of energy and the incorporation of new technology, from generation to distribution and the management of excess power. Today there is a shift from a highl...

Published:  Wed, 16 Jan 2019 04:18:00 GMT



Why IoT Needs AI to Succeed

An IoT system enables users to achieve deeper automation, inspection, and incorporation among a system. It improves the reach of these areas and their precision. IoT uses existing and rising ...

Published:  Wed, 16 Jan 2019 01:21:00 GMT



2019 Look Ahead: Woodlands narrows focus of incorporation, set to open adventure park

The Woodlands Township will in a few months have a unique new recreational option for residents and visitors - a high-ropes tree-based obstacle course with more than 60 features. Called Texas TreeVent...

Published:  Sat, 05 Jan 2019 08:19:00 GMT



Town, City incorporation costs nearly half a million

BELOIT - Town of Beloit and City of Beloit officials have each spent more than $200,000 on the incorporation process. Since 2013, the Town of Beloit has spent $227,503.95 on incorporation, which mostl...

Published:  Thu, 10 Jan 2019 06:24:00 GMT



Equatorial Guinea moves to support prospective entrepreneurs by cutting bureaucratic obstacles with a One-Stop Shop for business incorporation

Equatorial Guinea's one-stop shop became a reality this week, allowing investors and corporations alike to set up a business in sub-Saharan Africa's fourth largest oil producer in only seven days. The ...

Published:  Tue, 15 Jan 2019 03:30:00 GMT



Islanders hold task force meeting to prep for possible incorporation

The islands are still working to become their own entity. Starting a new city means there is a lot of ground to cover and they're trying to make sure they do it the right way. In November they learned ...

Published:  Mon, 07 Jan 2019 19:22:00 GMT



Town of Beloit to form committee to discuss next move for incorporation

The town of Beloit plans to form a committee to review a state board's decision last month to deny the town's incorporation petition, the town administrator said Monday night. The state Incorporation ...

Published:  Tue, 08 Jan 2019 02:18:00 GMT



The Incorporation Of Technology In Future Games

Games today offer a more immersive experience through the newest technological innovations. But if you think that 3D graphics is already cutting-edge, think again; future technologies will soon allow ...

Published:  Sun, 06 Jan 2019 16:54:00 GMT



Jam City Raises $145 Million for Mobile Game Acquisitions

Chief Executive Chris DeWolfe confirmed the raise is Jam City's largest since its 2010 incorporation and said the funds will be used "primarily for mergers and acquisitions; we've been ...

Published:  Wed, 16 Jan 2019 05:59:00 GMT



Share Us!    Share TopConsumerReviews.com on Twitter Share TopConsumerReviews.com on LinkedIn Share TopConsumerReviews.com on Google+ Share TopConsumerReviews.com on Pinterest

Home      About Us      Terms & Conditions      Privacy Policy      Contact Us      Disclosure