When it comes to corporation filings, even small details and minor errors can lead to failure in meeting requirements. Instead of fearing mistakes, seek professional help to be thorough and accurate.
There Are Many Types of Corporation Filings, Including:
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 a corporation, to protect your assets. If you want to make a positive impact on the environment and society, a 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 whose profits are taxed separately from its owners’. The owners are shareholders who elect a board of directors to manage the company. They have limited liability and are not personally liable for their business debts. They also can’t be held liable for the corporation’s wrongdoings.
Limited Partnership (LP)
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 have an active role in the business.
- They are not personally liable.
- Limited partners face slightly different tax rules.
Limited Liability Partnership (LLP)
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.
Limited Liability Company (LLC)
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.
“Doing Business As” Name
A DBA name is a business moniker 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 require a “DBA” name are sole proprietors and existing corporations, also known as LLCs.
A nonprofit corporation is a special type of corporation that 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 Corporation (PLLC)
Professional corporations and professional limited liability companies (PLLC) are corporations and limited liability companies that provide 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 themselves. If you are the sole member of a domestic LLC and you choose to treat the LLC as a corporation, you are not a sole proprietor.
Sole proprietorships are the simplest way to operate a business. The advantages of a sole proprietorship include:
- Easy and inexpensive to form
- Complete control
- Simplified tax preparation
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