You're probably reading this blog because you're thinking of filing for a corporation for forming an LLC, or you may have recently started your own business. What makes our economy work is spending money, and what helps small business stay in business is loyal customers who keep coming back. It's important to support small businesses, especially in a small community, small businesses, as you know, appreciate every client they have. Another reason to support small business is for the service, because the business appreciates you the service is often times better than doing business a big company. Small businesses may not all have a 24 hour support lines, but when their lines are open you're likely to speak to an actual human being quickly.
There are many reasons why it's beneficial for you and the business to support smaller businesses, aside from the service and supporting local economy, it's a good feeling to know that you're personally helping a business out. Hopefully the more you spend at small businesses helps other people spend with your business. Good Luck!
We often get calls here with clients asking, "Why should I incorporate my business?" well the answer is simple, whether you want to incorporate or form an LLC you will be protecting your assets. What a corporation or LLC is essentially doing is creating an entity that is separate from yourself, meaning that your entity is not attached to anyone's personal assets. This doesn't mean you don't have control over your business. It is also important to remember if you run your business recklessly a court can pierce the corporate veil. What that means is that even though you have the liability protection, there is an extent to this, for example, if you're found to be making fraudulent transactions, a court will hold you personally responsible for the transactions regardless of your corporation or LLC status. If you're wondering which type of entity you should file, whether that be an LLC, S-Corp or Corporation, we suggest you contact your CPA as they will be able to assist you as to which entity would suit your needs best. If you have any questions you can always feel free to call us at 866-999-8200.
The most common entities are Corporations, S-Corporations and Limited Liability Companies. Many people need help in deciding what type of entity to file for, we always suggest speaking to an accountant or a business attorney in your state in order to get advice for what type of entity would be best for you. Before contacting a professional it's probably a good idea to learn about the different types of entities. I'll give you a run down of the basics:
Limited Liability Company - Often referred to as an LLC, this type of entity is widely popular with smaller businesses, as it’s generally easier to take care of than a corporation. Since there are no stocks in an LLC, LLCs are owned and usually owned by members. You can have an outside party manage an LLC that you’re a member of, though it’s not usually what smaller companies choose to do since they’re so small it’s not necessary to have an outside party manage their LLC.
Corporations – Corporations are entities that have shareholders and a board of directors. While the shareholders own the corporation, the board of directors run and make decisions for the corporation in the interest of the shareholders. Every shareholder can vote on the directors, and amendments made to a corporation’s articles. Corporations might sound like huge companies, but lots of times small businesses run by one or two people are incorporated, because a corporation might benefit them more than an LLC or another type of entity. An S-Corporation is essentially the same as a corporation, though it is taxed differently than a regular corporation, also known as a c-corporation. We suggest you speak to your accountant in regards to whether an S or C corporation is best for you.