Both LLCs and Corporations provide complete protection for your personal assets, should legal action be taken against your company. Corporations are legal and binding entities with the ability to purchase assets. LLC’s cannot legally own assets but a member of the LLC can for the purpose of the business.
Do I pay more taxes as a LLC or a Corporation?
As an LLC the business does not pay taxes. The net income is passed through to your personal taxes via Sch. C (for a single member) or Sch. E (for a multi-member). If you elect to be a C Corp you are subject to double taxation. The C Corp is responsible for paying its own taxes on net earnings; the shareholders are responsible to pay their taxes on earning from dividends earned from the corporation. If you elect to be an S Corp the net income is by passed to your Personal Taxes via Sch. E.
What is an LLC?
Yes they are the easiest and simplest business to set-up and maintain. They are a great way to start out by giving you protection of your personal assets. If in the future you elect to convert your LLC in to a Corporation it is feasible.
What are the differences between a C Corp and an S Corp?
C Corp’s are mainly used for those in the manufacturing industry. C Corp’s pay their own taxes. S Corp’s are primarily used by those in the service industry. S Corp’s net income is passed thru to the shareholders.
Does El CID help with the paper work?
Yes we take care of all the paper work needed to process your corporation.
Business strategic plan defines goals, objectives, and targets for a company and outlines its resources will be allocated in order to achieve them. When a strategic business plan is in place, it allows each generation an opportunity to chart a course for the firm. Setting business goals as a family will ensure that everyone has a clear picture of the company’s future.
A strategic plan is long-term in nature and focuses on where you want the business to be at some future date.
What is an LLC?
Taking your current business from a solo-proprietorship or establishing a new business can be a daunting undertaking if done alone. Here at El Cid we can explain to you what is an LLC?
At EL CID we take the time to understand your business needs and help elect the best solution for your present and future business needs. Providing you with step by step guidance is a priority to us and explaining what is an LLC.
BEST Bookkeeping and Income Tax Service Firm around!!!
We specialize in business entities; LLC, S Corporations, C Corporations, and Nonprofit and all types of bylaws. We also love doing bookkeeping services and all types of income taxes whether it is personal or business. We are experts in all QuickBooks platforms. We can help you!
El Cid can establish your business entity; LLC (Partnership), S Corporation, Corporation is right for you. Benefits of incorporation can outweigh any downsides.
Secure your assets, gain tax breaks. LLC owners enjoy limited liability protection, and are typically not personally responsible for business debts. So creditors can’t pursue your home or car to pay business debts. Another plus: corporations often gain tax advantages, writing off such things as health insurance premiums, savings on self-employment taxes, and life insurance.
Grow your corporation for now—and the future. Incorporating bolsters credibility, and may help you reach potential new customers and partners. And while you can’t live forever—your corporation can. Even if an owner dies or sells interest, the corporation still exists.
Easy transfer and faster funds. Corporation ownership can be easily transferable (with some restrictions on S corporations). Capital can be raised more easily through the sale of stock. Another advantage is that many banks prefer handling loans with incorporated borrowers.
Ready for retirement. Retirement funds and qualified plans, like a 401(k), can be easier to establish.
Corporations do have some potential disadvantages, including:
Double taxation. C corporations are subject to double taxation of corporate profits when income is distributed as dividends. This can be avoided by electing S corporation tax status with the IRS.
Ongoing fees. You must file articles of incorporation with the state, plus applicable fees. Many states impose ongoing fees—which are steeper for a corporation than for a sole proprietorship or general partnership.
More record keeping. Corporations must follow initial and annual record-keeping requirements—which sole proprietorships, general partnerships and limited liability companies (LLCs) avoid.
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