If you are on the verge of launching a new business or even if you want to expand your current sole proprietorship or firm, you should be aware of the different kinds of business structures out there. Broadly defined, if you want to incorporate your business, you will have two choices here: Corporations and LLCs.
Both of the above have certain features that are not available to other types of business entities. Some of their major advantages include the following:
Minimization of Liability
Both LLCs and corporations allow the owners of the business to keep their individual and business assets completely separate from each other. For example, if you are part of a partnership firm or if you are the whole and sole proprietor of your business, then you will automatically be liable for your business debts. In case of a sole proprietorship, your legal liability will be 100 percent. And In case you are part of a firm, it will be equal to your share in the partnership.
Companies Enjoy Perpetual Existence
All partnership firms and sole proprietorships are dependent on their owners. If the owner dies or is unable to continue to work, the business will stand dissolved. However, a limited liability company can easily continue to exist even if the original owners are no longer alive or active.
Flexibility with Taxation Opportunities: LLC vs. S Corp
When it comes to taxation flexibility, both LLCs and S corps can give the owners multiple options, including:
When using this form of taxation, most of the taxes of the LLC or Limited Liability Company will not be paid at the actual business level. On the contrary, the sum total income and/or loss will typically be reported on the personal tax files of the individual shareholders.
Recovering Business Losses
S corps allow their owners to show their business losses on their personal returns. Many aspects of the business such as initial operation and startup expenses are shown as tax deductions on your return files.
Your Business Expenses are Tax Deductible
Once you incorporate your business, you will be able to deduct most of your day to day running expenses. These include your employee salaries, utility bills, etc., before your profits may be allocated as the owner’s income.
Ultimately, you will have to determine precisely which business model fits your requirements. We, at BryteBridge, will conduct our own highly comprehensive audit of your business. After that, we will analyze your requirements in order to determine precisely which form of importation is most eminently suitable for your particular needs and requirements.
At BryteBridge, our qualified professionals have extensive experience drafting articles of incorporation. They will assist you with any questions or concerns you may have and help you determine what legal structure is best for you. If you are unsure what legal structure to choose or are wondering what the best option is – Incorporation vs LLC – our service consultants will be happy to assist you.
Best of all, our rates are very competitive and we offer flexible payment methods as well as annual plans. Some key benefits of using us:
- Affordable Pricing: Our services are priced to accommodate your small business budget while still including all necessary items for your organization.
- Professional Quality: We pride ourselves on the professional-grade quality work completed by our consultants, and guarantee 100% satisfaction.
- Full-Service Options: We do our document preparation services in house, providing our customers with consistent professional service, quality, and quick turnaround.
- Streamlined Process: We prepare your documents in a timely manner, allowing you to receive your business services within 10-15 days after receiving all necessary documents.
- Complementing Services: We offer a variety of business services, including payroll, bookkeeping, tax preparation and more all for an affordable price!
- Experienced Staff: We have gained an exceptional amount of experience in document preparation due to our low-prices, allowing you to be prepared for audits, annual reporting, fund-leveraging and financial planning. We are experts when it comes to filing for businesses.
- Long-Term Relationship: Because we offer many services, our goal is to win our clients with great pricing and fanatical customer service to enable a long-term relationship.