Which is best, an S Corporation, C Corporation or LLC? An Update No one type of entity is inherently better than another. Each person and business must consider a number of factors and apply them to his or her specific situation. There is an important distinction between a type of legal entity and the types
The Evolution of Limited Liability Entities (LLE) Corporations The last 15 or 20 years have witnessed a rapid evolution in entity types available for operating a business. For a couple of centuries, corporations were the major choice for a limited liability entity. Over the years, state corporate statutes, appellate case decisions, and tax regulations have
The Popularity of the LLC An LLC has become an increasingly popular entity type because it has a very favorable attributes compared to other business entities, principally because it limits its members’ liability for its obligations, it is very flexible, it can have a structure as simple or as complex as desired and its members
Let’s begin by explaining what it means to incorporate a business. Quite simply, you file a form, commonly called Articles of Incorporation, with the Secretary of State. This is the essential step for creating a new and separate legal entity for running your business. There will be additional formation documents to be completed and your
The Evolution of the LLC The limited liability company (LLC) is a relatively new type of business entity. It first appeared in the United States in the 1970s in Wyoming but was slow to gain acceptance because of uncertain tax treatment under the Internal Revenue Code. Specifically, in order to be able to adopt the
One of the advantages of forming an LLC is the personal liability protection it offers for the personal assets of the members. Because “LLC” is an acronym for “limited liability company,” it is sometimes incorrectly believed that the asset protection offered by an LLC is superior to the protection offered by a corporation; that it
Choosing the right business entity allows an entrepreneur to reduce liability exposure, minimize taxes, and ensure that the business can be financed and run efficiently. It also provides business owners with a mechanism for ensuring that the business operations will continue, rather than being automatically terminated, upon the death of an owner. Formalizing the business
Important Factors When Choosing a LLC for Asset Protection in Owning Real Estate The limited liability company (LLC) has become a favorite vehicle for owners of income-producing real estate seeking to easily and inexpensively establish a level of personal liability protection from claims of outsiders. Because the LLC is a separate legal entity, the objective is to transfer
LegalZoom™ spends $20-30 million annually for marketing and advertising to ensure that their name is the first one that comes to mind when you decide to form a corporation or LLC. They have become the dominant force in online incorporation services by exploiting the public’s aversion to attorneys and offering a simpler and less expensive alternative to using an attorney. You
