Incorporation

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When choosing to start a business, whether it be your first business or your 10th, you come to that important time of decision when you think to yourself, “Should I incorporate or should I start my business as an LLC formation?”  While there are benefits and drawbacks to both, I want to talk today about what I think is the number 1 reason to start your business as an Limited Liability Company.

So, what’s the number 1 reason to start your business as an LLC formation?

4 Taxation Options!

When you start your business as an LLC formation, you can choose to have it taxed in 4 different ways, depending on the business structure you want:

1) Not a separate entity (if there is only 1 member of the LLC- you)

This gives you reduced liability from the risks of business, while keeping the income on your personal tax form, allowing you to count all profits and losses on your own income tax form.  Very simple paperwork.

2) As a “pass-through” entity in the form of a partnership (if there is more than 1 member of the LLC formation)

This has many options of how you would like to structure ownership for the various members and keeps taxes on the members income tax forms, according to their percentage ownership in relation to the business’s profits.  The “pass-through” status avoids the dreaded “double-taxation” that corporations are known for.

3) As a C-Corporation (this must be chosen with IRS form 8832)

A C-Corporation may be the way you want to be taxed without the costs involved with actually forming and maintaining a C-Corporation.  This allows you to keep more money in the business, choose when your business’s tax year will be, when you pay yourself and your employees, and a provides a variety of other tax flexibilities.
$149 incorporation fee or LLC formation fee waived for a limited time only!

4) As an S-Corporation (this must be chosen with IRS form 2553)

Electing for your LLC to be taxed as an S-Corporation is another way of having “pass-through” entity status that has some extra tax saving possibilities.

Because of the tax flexibility of an LLC formation, it allows your business to remain flexible and adjust as it grows.  Consider an LLC formation today.

$149 incorporation fee or LLC formation fee waived for a limited time only!