Is a corporation or a limited liability company (LLC) best for your business. Which one is going to be better for your business? Which one will be easier to create and maintain? Although this article cannot give you a firm answer one way or the other, it will attempt to show you the advantages and disadvantages of both corporations and LLCs. Is an LLC Best?Many small businesses may find that the flexibility and simplicity of a LLC makes it the better choice when it comes to forming as a corporation versus an LLC. If you plan on your business owning property, you will seriously want to consider forming your business as an LLC to avoid the problem of double taxes.
Is a Corporation Best?There will often be factors that make a corporation (C Corporation) the better choice when it comes to the corporation versus LLC decision. These factors could include:
Providing Benefits to Owners
How to Retain Good EmployeesUnlike a LLC, a corporation has a great incentive system built directly into the structure of the business that can help small business retain great employees. Corporations can offer their best employees stock options that, in addition to providing an incentive for employees to remain with a business, also provide an incentive for an employee to continue working diligently for the business. Offering these stock options is an easier way to get employees a membership interest in the business, unlike LLCs where it can often be difficult and complex to get employees into the membership circle. What about an S Corp?Under an S corporation, you only pay self employment taxes on money you receive as compensation for your services, not on the profits that pass through the corporation to you. To make this clear, suppose you get $80,000 from your S corporation for the year, $60,000 of which was compensation for your services to the corporation. You will only pay taxes (15.3 percent) on the $60,000, not on the additional $20,000.
Business Lawyer Free ConsultationWhen you need help with a corporation, LLC, S-Corporation or other business entity, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
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What a Car Accident Lawyer Says Salt Lake City Contract Attorney via Michael Anderson https://www.ascentlawfirm.com/corporation-or-an-llc-for-business/
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