American Incorporators has been helping businesses incorporate for more than 35 years. Here, we break down the pros and cons of the most common business entities: C-Corporations, LLCs and S-Corporations.
2. When starting a business, there are a number of choices to make.
One of the first is how to incorporate.
It can seem daunting in the beginning, but with a few pointers from
American Incorporators you'll have a better feel for formation.
4. The Scoop
Used widely by the big boys, but also
by smaller and medium-sized
businesses desiring an unlimited
number of shareholders.
C-Corporation
5. Sets you up for success if you are:
- Seeking venture capital
- Taking on equity investors
- Plan to be a publicly traded company in the future
Pros
Cons
C-Corporation
More paperwork than LLCs
The potential to have both profits and dividends
taxed - the dreaded "double taxation"
7. The Scoop
Generally, the Limited Liability
Company (LLC) is the most popular type
of incorporation for small businesses.
LLC
8. Limits personal liability for business debts
and agreements
A pass-through entity for tax purposes
Fewer requirements around corporate
meetings and formal paperwork
Not setup for raising venture capital and equity
Pros
Cons
LLC
10. The Scoop
Common among all sizes of
businesses, the S-Corporation option
sets a cap of 100 shareholders.
S-Corporation
11. Avoid double taxation
Pass-through profits or losses to shareholders
to include on individual tax returns
Flexibility to advance to C-Corporation at a later date
There are limits on shareholders and stock
restrictions that come with an S-Corp formation
Your business must meet certain requirements
to qualify
Pros
Cons
S-Corporation
12. American IncorporatorsLtd.
Start your company,
fulfill your dream
For more formation options,
visit American Incorporators at ailcorp.com.
Or consult a specialist by phone at 1.800.441.5940.