Category Archives: Differences
Isn’t it easier and less expensive to just use a sole proprietorship or partnership?
The main disadvantage of doing business as a sole proprietor (one person) or partnership (two or more individuals) is the risk of liability. You have no limited liability protection like you do if operating in the corporate or LLC form. … Continue reading
Posted in Differences, Sole Proprietorship
Tagged corporation, llc, llp, partnership, sole, Sole Proprietorship
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What should be considered in deciding on a business?
The two most import considerations for most small businesses are: Liability protection and Tax considerations
Posted in Differences, Liability Protection
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What is the basic difference between a C corporation and an S corporation?
The difference between a regular C corporation and an S corporation is in the way taxes are reported and paid. Both types of corporations are initially formed as a regular C corporation. Both are subject to the same state corporation … Continue reading
Posted in Differences
Tagged c corporation, corporate types, Differences, organization, s corporation
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What is the difference between a private and a public corporation?
A private corporation is a term often used to describe a small corporation in which the stock is issued to a limited number of shareholders and is not available to the public. In most small private corporations, the shareholders are … Continue reading
What is a “professional corporation”?
Most states have statutes providing for incorporation by those performing specific types of professional services such as doctors, dentists, accountants, lawyers, architects, etc. These corporations are set up and operated similar to a regular corporation but there are a few … Continue reading
What is the difference between a “close corporation” and a “closely held corporation?”
A “closely held corporation” is a general term used to describe a smaller privately held corporation with few shareholders, usually family members or close associates. On the other hand, some states have adopted special statutes for a “close corporation” which … Continue reading
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Tagged close corporation, closely held corporation, formation, organization
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Should I incorporate in Nevada or Delaware?
The short answer is that it will probably cost you more money to incorporate in Nevada or Delaware. In addition, it may provide few, if any, substantial advantages unless you have a larger corporation and unless you live in one … Continue reading
Are offshore corporations legitimate and what are the benefits or pitfalls?
Most small corporations should not be looking to incorporate offshore. First, if it is done for tax purposes, you are likely to substantially increase your odds of getting audited by the IRS since there are many offshore tax schemes that … Continue reading
Posted in Differences
Tagged corporations, federal, legitimate, local, offshore, state
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What should I be considering in deciding on the proper entity?
The two most important considerations for most small businesses are 1) liability protection and 2) tax considerations. Textbooks sometimes cite other issues such as perpetuation of the entity, continuity, ability to raise capital, etc. However, in my experience, these are … Continue reading