Business Formation Services
Starting a Business? Let us Help You!
Are you ready to bring your business idea to life? We specialize in forming LLCs, S Corps, and C Corps, helping you choose and establish the business structure that best aligns with your goals and circumstances.
Each type of business entity comes with its own advantages and disadvantages. Making the right decision is essential, and we’re here to guide you. Learn more about each entity type below.
Find the Perfect Business Structure for Your Success!
LLC (Limited Liability Company)
An LLC is a flexible business structure offering personal asset protection and tax benefits.
Pros:
- Limited Liability: Personal assets are protected from business debts and lawsuits.
- Tax Flexibility: Single-member LLCs report business income on personal tax returns, avoiding double taxation.
- Operational Flexibility: Less complex operational requirements with fewer legal obligations.
- Lower Administrative Burden: Fewer paperwork and compliance requirements compared to corporations.
Cons:
- State Fees: Formation and annual maintenance costs can be relatively high.
- Investment Limitations: Some investors may prefer C Corps for stock issuance.
- Self-Employment Taxes: LLC members may be subject to self-employment taxes.
S Corporation (S Corp)
An S Corp provides "pass-through taxation" while operating with certain corporate formalities.
Pros:
- Pass-Through Taxation: Business income is taxed only at the shareholder level, avoiding double taxation.
- Salary and Dividends: Owners can separate salary and dividends for tax optimization.
- Personal Asset Protection: Shareholders’ personal assets are shielded from business liabilities.
Cons:
- Shareholder Limitations: Limited to 100 shareholders, who must be U.S. residents or citizens.
- Complex Compliance: Requires regular meetings, record-keeping, and detailed reporting.
- Reasonable Salary Requirement: Owners must receive a reasonable salary, which could draw IRS scrutiny.
C Corporation (C Corp)
A C Corp is a traditional structure ideal for large businesses and raising capital.
Pros:
- Unlimited Shareholders: No limit on the number of shareholders, regardless of nationality.
- Attractive for Investors: Easily raises funds through stock issuance.
- Separate Legal Entity: Strong personal asset protection as the corporation exists as an independent legal entity.
Cons:
- Double Taxation: Corporate income is taxed, and dividends are taxed again at the shareholder level.
- Higher Administrative Burden: Requires strict compliance with legal and documentation requirements.
- Costs: Formation and maintenance can be expensive.