Educating Yourself about Corporation and Your Business
Your personal assets will be protected if you incorporate your business, aside from creating tax advantages and others. However, you will only get these advantages when you do things right, and the best way is to get an expert advice who can consider you assets, know the state laws and your reasons why you are incorporating.
You can get an incorporation start-up information through experts in the field like Corporate Direct. With the professionals inside this business service agency, you will have your incorporation by just telling them about your business and investment plans.
Protection of your assets will be done best with the aid of this service company on how to incorporation. One thing that this business service agent will do is to make a preliminary name check to ensure that the business name you have picked is still available in the state where you will locate your corporation. In order to incorporate your business, this service company will file the paperwork with the Secretary of State, thus making your company official. A complete corporation package will be sent to you by this agent once you are registered with the state, plus you will also receive their service offer as your registered agent for a year free of charge.
As a businessperson, there are two terms that you should know or be aware of to be in the business world, and these are LLC or limited liability company and a C corporation. There is a difference between llc and corporation and educating oneself will not only help you to learn and understand when you converse about business, but will also assure people that you know what you are doing in the business. These conditions have both structures, but have different traits that would allow business people to know and decide which is most suitable for their kind of business. Know that both have an indefinite term of life, however, there are more distinguishing traits in LLCs.
The specific type of business entity that combines personal liability protection of a corporation and tax benefits of a partnership is called limited liability company or LLC. Businesses with only a few shareholders and with an operation that is small is suited to have this kind of business entity, plus its structure can offer protection to its company owner.
On the other hand, a C corporation is the exact opposite of the LLC, where this entity is taxed separately from its business owners. Medium and large sized companies are more suited to this kind of entity where the shareholders own the company.
A C corporation uses a double taxation while LLC uses a single taxation, and this is another difference between the two business entities.