Business Incorporation

Let us guide you through the things that you need to consider and obtain to make your business legal.

Different Business Types

1. Limited Liability Company (LLC)

The most popular business structure in business incorporation services. This type of business is classified as a pass-through tax entity, meaning the profits and losses from your LLC are not taxed at the company level. Instead, they flow directly to you or your shareholders/partners for tax reporting on their personal returns.

2. Sole Proprietorship

A sole proprietor owns and manages a business without the help of a corporation. If you are the only member of a domestic limited liability company (LLC), on the other hand, you are not considered a sole owner if you choose to handle the LLC as a corporation rather than a partnership. Sole Proprietorship businesses are easy to start and do not require as much paperwork as other business structures.

3. Partnerships

Partnerships are always unincorporated businesses. That means the profits and losses flow directly to you or your partners for tax reporting on their personal returns. Businesses that want limited liability protection need to either be corporations or LLCs, not partnerships. You can also choose a specific type of partnership – general vs. limited – so you must make certain that you consult with an attorney who is experienced in business laws before making this decision as it could have long-term ramifications for both you and your partner(s).

4. Corporations

A corporation is a separate legal entity from its owners (shareholders), which limits individual shareholders’ responsibility if the company goes bankrupt or commits some other form of litigation against another party. A major advantage of incorporation is the company’s protection against personal liability. Business owners benefit from this legal shield and can sleep better at night knowing their assets are protected or other unforeseen circumstances affecting the business.

5. S-Corporations

Also known as the S sub-chapter, this is a type of corporation that provides the same liability protection to its owners (shareholders) that other types of corporations provide. The major benefit is avoiding double taxation on profits; income and losses pass through directly to shareholders for tax purposes. Business can be incorporated in any state with almost no difference between states when it comes down to legal requirements except annual report filings, which may vary from state to state.