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Incorporate In provides information on how to incorporate a business. Incorporation Made Easy | What are the Costs? | Which is Best for me? | Delaware or Your State? |
Incorporating Made Easy!
Basically there are 3 business incorporations: LLC, C-Corp, and S-Corp.LLC (Limited Liability Company)
LLC's provide limited liability protection to its owners. Typically, the owners are not personally responsible for the debts and liabilities of the business. LLCs typically do not pay taxes at the business level. Any business income or loss is "passed-through" to the owners and reported on the owners’ personal income tax returns. Any tax due is then paid at the individual level. Learn More.
C-Corp (Standard Corporations)
Corporations provide limited liability protection to its owners. Typically, the owners are not personally responsible for the debts and liabilities of the business.
Corporations often gain tax advantages such as: the deductibility of health insurance premiums paid on behalf of an owner-employee; savings on self-employment taxes, as corporate income is not subject to Social Security, Workers Compensation and Medicare taxes; and the deductibility of other expenses such as life insurance.
The primary disadvantage to a corporation is double taxation. Profits of a corporation are taxed twice when the profits are distributed to shareholders as dividends. They are taxed first as income to the corporation, then as income to the shareholder. All reasonable business expenses such as salaries are deductions against corporate income and can minimize the double tax. Learn More.
S-Corp (SubChapter S corporations)
S-Corps are corporations and have all the benefits of a corporation, but the double tax can be eliminated by making an S corporation election. It can avoid having your corporation treated as a separately taxable entity. Learn More.
Once you incorporate, visit the Small Business Administration for business tips such as buying credit card machines instead of leasing them.
Incorporation Made Easy | What are the Costs? | Which is Best for me? | Delaware or Your State?