When it comes to Corp filings, even small details and minor errors can lead to a failure in meeting filing requirements. Instead of fearing mistakes, getting professional help will be more beneficial for you.
There are many types of Corp filings.
An S corporation (S corp) is a unique type of corporation which is done through an IRS tax election. Also, by electing to be an S corporation, a domestic corporation, if eligible, can avoid double taxation. The business itself does not receive tax, unlike shareholders.
You need to create a business entity for your company such as corporation to protect your assets. If you want to make a positive impact on the environment and society, b-corporation is the best choice for you. Furthermore, choosing a B-corporation means your personal assets will be safe through liability protection.
A C Corporation is a business entity, which profits are taxed separately from its owners. The owners are shareholders who elect a board of directors for managing the company. They have limited liability and are not personally liable for their business debts. They also cannot be liable for corporation’s wrongdoings.
A limited partnership has one general partner and one limited partner. The General partner has the same role as in a general partnership: controlling the company’s day-to-day operations and being personally liable for business debts.
Here are some facts about LP:
• They do not play an active role in the business
• They are not personally liable
• Limited partners face slightly different tax rules
A Limited Liability Partnership (LLP) is basically a general partnership but with the addition of giving the partners at least some limited personal liability. Some states provide a limitation of personal responsibility that is similar to a corporation.
An (LLC) is a legal structure whereby the members of the company cannot be personally liable for the company’s debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship. While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships.
DBA name is a business name that is different from your personal name, the names of your partners or the officially registered name of your LLC or corporation. Usually, the people who have require a “DBA” name are sole proprietors and existing corporations, also known as LLCs.
A Nonprofit corporation is a special type of corporation which must meet specific tax-exempt purposes. Furthermore, to qualify for Nonprofit status, your corporation must be formed to benefit: the public, a specific group of individuals, or the membership of the Nonprofit. Some examples of Nonprofits include: religious organizations, charities, and membership clubs.
Professional corporations and professional limited liability companies (PLLC) are corporations and limited liability companies which are providing professional services. If you need a state license to pursue your profession then you must form a PLLC.
A Sole proprietor is a person who owns an unincorporated business by himself. Although, if you are the sole member of a domestic LLC, you are not a sole proprietor if you elect to treat the LLC as a corporation.
The sole proprietorship is the simplest business form under which, one can operate a business. The advantages of a Sole Proprietorship:
• Easy and inexpensive to form
• Complete control
• Simplified tax preparation