Whether your team consists of 2 individuals or ten, all businesses will have
the benefit of incorporating.
Advantages of forming a company or financial obligation company
(LLC) include:
Personal asset protection.
Both firms and LLCs enable house
owners to separate and shield their personal assets.
In a properly structured and managed
company, owners should have limited liability for business debts and
obligations.
Additional credibility.
Adding "Inc." or "LLC"
after your business name adds instant authority and legitimacy.
Consumers, vendors, ANd
partners could choose to do
business with an incorporated company.
Nationwide availability. All 50 states and the District of Columbia now recognize both corporations and LLCs.
Name protection. In most states, other businesses may not file your exact corporate or LLC name in the same state.
Perpetual existence.
Corporations and LLCs exist constantly,
even if their ownership or management changes.
Sole proprietorships and
partnerships end if an owner dies or leaves the business.
Tax flexibility. Though profit and loss typically pass through an LLC and get reported on the personal income tax returns of owners, an LLC can also elect to be taxed as a corporation.
Tax flexibility. Though profit and loss typically pass through an LLC and get reported on the personal income tax returns of owners, an LLC can also elect to be taxed as a corporation.
Likewise, a company will avoid double taxation of company profits
and dividends by electing Subchapter S tax standing.
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