The limited liability company structure continues the modern trend of combining the best features of a partnership with those of a corporation. Its primary characteristics are that its owners have limited liability (like shareholders in a corporation) and it is taxed as a partnership, meaning that all income earned by the entity is passed through the company to the owners who pay taxes at whatever rate is applicable to them. An LLC can be created only by complying with pertinent state statutes.
Our LLC package includes:
– Name Search
– Name Registration – $10 Filing Fee (not required, optional)
– Articles of Organization – $70 Filing Fee + $30 Name Search/Reservation (optional)
– Registered Agent – $100 to $200/year (not required, optional)
– Expedited Service – Call or email to inquire about timing and fees
– $800 Min. State Tax (see your tax professional for more details)
– Limited Liability (LLC is its own entity)
– Members Taxed Individually
– LLC Formation Agreement
– Obtain state and local licenses and/or permits (EIN, Re-sellers Permit)
– DBA (Fictitious Bus. Name)
– Less bookkeeping and paperwork than a Corporation
Business Corporations
A business corporation is an entity created by the person or persons who organize it. This legal entity may own property, enter contracts, sue and be sued. Because it is a person, it is subject to taxation. Its owners, called shareholders, also pay tax on certain distributions made to them, such as cash dividends. This is often referred to as double taxation. Shareholders are protected from liability and their loss is limited to the amount of money they invest in the corporation. Although the shareholders own the corporation, the corporation is managed by its board of directors. The directors typically appoint officers to carry out the directors’ policies and goals for the corporation. A corporation is subject to regulatory control by the state in which it is formed as well as any other state in which it does business.
Professional Corporations
Professionals such as doctors, lawyers, engineers, and accountants may incorporate to obtain certain tax and other benefits available to a business corporation. These professionals remain personally, liable for their own negligence and for the negligence of those working for them.
Non-Profit Corporation
Under IRS Code 501(c)(3) a nonprofit corporation may be formed to operate for some religious, charitable, educational, literary, or scientific purpose and is eligible for certain Federal and State tax exemptions. These five purposes are usually included as purposes accepted by the individual states as a valid nonprofit corporate purpose. A nonprofit corporation, however, cannot issue shares and cannot pay dividends and, upon dissolution, must distribute its remaining assets to another nonprofit group.
Our Corporation Package includes:
– Name Search
– Name Registration – $10 Filing Fee (not required, optional)
– Articles of Incorporation – $100 Filing Fee + $30 Name Search/Reservation (optional)
– Registered Agent – $100 to $200/year (not required, optional)
– Expedited Service – Call or email to inquire about timing and fees
– $800 Min. State Tax (see your tax professional for more details)
– Limited Liability (Corporation is its own entity)
– Double Tax (Corporate and Personal, expect sub-section S)
– Stock (Raise capital)
– Bylaws
– Obtain state and local licenses and/or permits (EIN, Re-sellers Permit)
– DBA (Fictitious Bus. Name)
– More bookkeeping and paperwork than a LLC
Give us a call or visit our Paso Robles or San Luis Obispo offices to get stated. (805) 237-7770