Quick Incorporate

A corporation is a designated entity where the company and the individuals related to it, have different legal identities. The reason most companies prefer to incorporate is asset protection. Incorporation protects your personal assets from seizure during a lawsuit.

If you decide to incorporate your small business, you can choose the S corporation, C corporation or LLC model. Before choosing any kind of corporate model, you should look at the tax rules and regulations related to a corporation. Read the rest of this entry »

Your start-up business is taking off. In fact, you just got your first check.

Now, you need to get that money in the bank.

You don’t have a business bank account? How are you going to cash that check?

In order to open a business bank account, you need to have your business license showing your trade name, your Federal Employer Identification Number, and your Certificate of Incorporation for a corporation, or Certificate of Formation for your LLC, or your partnership agreement for a partnership. Read the rest of this entry »

A limited liability company is basically a legal business entity in which the owner’s liability is limited. This type of business organization is best suited for small scale business as they have a limited number of partners. A limited liability company in fact is neither a partnership nor a corporation. But it is formed by combining the features of both these. In it, the businessman’s liability is restricted to his investment in the company. This means that he is not liable for the debts incurred due to the transaction made by the company. A limited liability status provides protection to the owners from some liabilities of being in the business and at the same time give them some tax related benefits.
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LLC (limited liability company) provides the benefits of liability protection and pass through taxation features of sole proprietorship or partnership. Many small business owners prefer this form of corporation as it provides greater flexibility in management. The general characteristics of LLC’s are limited duration of existence, no double taxation and member or owner managed business. Read the rest of this entry »