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Deciding what kind of corporation to be, LC, LLC, Corp, etc.


Which structure is the best for your business, an LC, LLC, or a Corp.? There are several factors in determining which structure is the best for your business. As a business owner, you will be faced with many decisions including what business structure to choose for your company's formation. Most business owners have access to a broad variety of information concerning the purpose of forming a limited liability company (LLC). For many businesses, the LLC provides a mixture of pass through tax benefits of a partnership and the limited liability of a corporation. More and more business owners are aware of the flexibility provided by an LLC and choose an LLC over becoming a corporation. The main benefit of this business formation is that members are protected from personal liability. There can be an unlimited number of members in an LLC company. The company can be entirely administered by its members or the members can choose someone to be the manager of the company. The company needs to choose a member of the LLC as a registered agent who is going to be responsible for any legal documents. The LLC is most often less expensive to form than a full corporation which is another reason why forming an LLC is popular among small businesses.

The most flexible entity available to small business owners is the limited liability company or the LLC. Small businesses are great targets for lawsuits. An LLC protects business owners from losing their personal assets in case their business is sued. An LLC is very attractive if you decide to start up your own business.

When you decide to incorporate your business, you need to do so in the state in which you conduct your business. You need to file your state and sales tax returns in the state that you run your business from and where most of your earnings come from. Some business owners with massive nationwide activity choose to be incorporated in Delaware or Nevada because of the business laws in those states. Although you have the choice of incorporating your business in Delaware or Nevada, you still need to register your business in those states. State law mostly establishes that the many forms of organizations like limited liability company, sole proprietor, corporation, partnership, S-corporation, trust and non-profit organization be formed in the state in which they reside. The main reason many business owners choose to incorporate is to gain the advantage of limited liability meaning to avoid putting their personal assets at risk while running their business.

When you decide to open up your business, consider the legal aspects of the matter. If you want to have a trustworthy business that shows your customers you run a serious and professional business, you have to give your company a legal structure. Having a legal structure helps the customers to feel comfortable about doing business with you and knowing that you are not going to disappear after you have receive payment from them. Depending on the kind of business you want to start, an LLC can protect you as an individual in case of bankruptcy or lawsuit.

The final decision of the kind of corporation you want your business to be is something that you have to choose on your own. You need to educate yourself as much as possible about your options.

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