Structure

Business Formation – Choose a Business Structure: LLC, Corporation, Sole Proprietorship, Partnership

Common questions

What is a limited liability company?

A limited liability company, or LLC, is a business entity created under state law that combines characteristics of both a corporation and a partnership. Like a corporation, the owners of an are generally not personally liable for company debts. Like a sole proprietorship or a partnership, an LLC is, by default, a “pass through” entity for tax purposes. This means that the LLC does not pay taxes on its profits, but instead, profits and losses are “passed through” to the owners, who must then pay tax on their share of LLC income.

How does a corporation protect my personal assets?

If a business operates as a corporation, the business owners, called shareholders, are not personally liable for debts or other claims against the corporation. That’s because the corporation is a separate legal entity from its owners. If a corporation complies with the

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Selecting A Business Structure

The decision regarding business structure is a decision that a person should make, in consultation with an attorney and accountant, and taking into consideration issues regarding tax, liability, management, continuity, transferability of ownership interests, and formality of operation.

Generally, businesses are created and operated in one of the following forms:

  • Sole proprietorship: The most common and the simplest form of business is the sole proprietorship. In a sole proprietorship, a single individual engages in a business activity without necessity of formal organization. If the business is conducted under an assumed name (a name other than the surname of the individual), then an assumed name certificate (commonly referred to as a DBA) should be filed with the office of the county clerk in the county where a business premise is maintained. If no business premise is maintained, then an assumed name certificate should be filed in all counties where

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