I am starting a web based business and wondering what the pros and cons are for incorporating. I'm also wondering if you can have your company be a LLC without being incorporated. Thank you.
137759
Pros and Cons for Incorporating\n\nAdvantages\n- Stockholders have limited liability.  \n- Corporations can raise the most investment capital. \n- Corporations have unlimited life.  \n- Ownership is easily transferable.    \n- Corporations utilize specialists.   \n\nDisadvantages\n- Corporations are taxed twice. \n- Corporations must pay capital stock tax.  \n- Starting a corporation is expensive.  \n- Corporations are closely regulated by government agencies.    \n\nLLC is not incorporation. It is a different legal structure from a corporation. The features of the LLC\n\n- Limited Liability Status. The main attraction of an LLC is its limited liability status, a feature that it shares with corporations. \n- Tax Benefits. Like sole proprietorships, partnerships, and S corporations, the business profits and losses of an LLC are taxed at individuals' income tax rates. You will avoid a corporation's double taxation, where taxes are reported at a separate business level.\n- Owners of the LLC. While owners of corporations are called stockholders, LLC owners are referred to as members. \n- Flexible Management Structure. An LLC can be run either by its members or a management group elected by the members. \n- Flexible Distribution of Profits and Losses.\n\nFor comparisons of LLCs and Corporations:\n\nLLCs vs. C Corporations http://www.powerhomebiz.com/vol97/llcs.htm\nS Corp. vs. LLC: Which Structure is Right for Your Business  http://www.powerhomebiz.com/vol136/structure.htm
175674
Go to the website of the California Secretary of State, see link below.\n\nYou can choose between the links for corporation vs. limited liability company or limited partnership.\n\nThere are several factors you should consider before selecting a corporation vs. LLC or vice versa.  Having said that, a lot of entrepreneurs are starting LLCs b/c they're overall easier to operate and the taxes flow through to you, the LLC itself doesn't pay taxes.\n\nTo start an LLC, go to the SECOND link below.  You'll find forms of articles of organization, plus filing fees.  One of the forms is LLC-1, this is the one you want.\n\nIf you're a sole proprietor and want to stay that way, you need to register your business name as a 'fictitious name'.  I believe in California you guys register those at the county level, so do a Yahoo search for your county and find their official site, and look around there for a form.  If nothing else, just call them.\n\nGood luck.
461434
This is perfectly legal - but why would you do it?  You could incorporate a company, invest your money in the company, and then have the corporate entity purchase shares on any stock market.  The company would then have the assets - the stocks and other investments.\n\nThe question is why?  Or am I completely missing your question.  In Canada, where I am from, this would be about the worst way to invest as passive income is taxed differently than other small business income. \n\nNow if you want investors - that is a different situation.  If you clarify the question, perhaps I could give you a better answer.
189928
Read your articles of incorporation and bylaws, check with your secretary of state's website, and speak with an attorney.  Your articles of incorporation and bylaws typically lay out how these are structured.  If not, the secretary of state usually has some information on how to meet general requirements.  Speaking with a local business attorney (particularly one who helped you establish your company) is the quickest way to get the right answer.
200918
If you're going to be employed then there's no need to worry about setting up a limited company. You will be paid on commission, which to my understanding, will highly depend on how much you put in to your work, e.g how much sales you make etc.\nOn the flip side, if you're forming your own comapny, I'ld advise you to form an LLC or limited liablity company, which has a lot of advantages mainly, that you will not be held personally liable should your company be sued!
480114
Due to the complexity and extra cost of opening a corporation, I would suggest an LLC.  With a one member llc it is treated much like a sole proprietorship.  Gains will be taxed at your personal rate.  But if you live in this home for 2 out of 5 years, then you are entitled to a 250k exemption from the sale of the home.  If you plan on buying and selling many houses then maybe an Inc would be better.  Consult a lawyer and/or CPA.  It all depends on the facts and circumstances and how big you plan on becoming with your investment activities.  Inc are easier to get financing... LLC is cheaper and you can open quite easily by yourself.
164790
Hi, I have no experience with this but I've found two sites that may help in starting up your business.\n\nGood luck!
414806
you will probably qualify as a partnership, not a Corp (Ther are certain guidelines to both).  You should talk to the small business association to get that information tho.  You are right though, it is mostly about taxes.  If you are a corporation, you are what they call, double taxed, but you are only liable as far as the business itself.  As a partnership, you are liable for everything you own.  Meaning that if someone sues you, they can take everything as a partnership, but the upside is that taxes are lower.
212092
You should only use Inc or LLC if, in fact, you are a Corporation or an LLC.  You could register "ABC Industries" as a business name with your city or county clerk's office. Without any other special filings, you'd be considered a sole proprieter doing business as (DBA) ABC Industries. (As long as your name did not conflict with a trademark or corporation name.)
96911
Generally, there is no "requirement" to be a corporation, but corporations (in addition to LLCs) are nice for liability limitation.\n\nCorporations are reasonably cheap to form.  A nice neighborhood type lawyer will probably do the entire incorporation for you for few hundred dollars plus filing fees - including getting your EIN number, any sales tax registrations, and possibly filing your S-Corporation election (so that your corporation avoids "double-tax").   If you're not incorporating in NY but you're doing business there, you'll also want to consider "qualifying" your corporation to do business in NY.   Again, that is simple stuff that can be handled by a neighborhood lawyer.\n\nGood luck.
477104
Absolutely not since the fundraiser enterprise would operate as a not for profit venture and is within the scope of section 501c. These types of entities are tax exempt and get their special ID numbers.\n\nIf you do not wish to keep the LLC, you need to dissolve it by filing dissolution with the state and notifying the IRS. This triggers a final tax billing to be sent to you and the EIN is cancelled. \n\nEIN are issued for profit ventures only....please register the  fundraiser seperately as a charity ands get a tax exemption form from the IRS.....do not under any circumstances use the LLC either as a parent company or its EIN...
120808
HOW TO REGISTER\nClick here to get to the Indiana Department of Revenue:\n\nhttp://www.in.gov/dor/business/register.html\n\nIt explains how to register your partnership.\n\n\nPARTNERSHIPS\nA partnership is simply a business owned by two or more people that hasn't filed papers to become a corporation or a limited liability company (LLC). No paperwork needs to be filed to form a partnership -- the arrangement begins as soon as you start a business with another person. As in a sole proprietorship, the partnership's owners pay taxes on their shares of the business income on their personal tax returns and they are each personally liable for the entire amount of any business debts and claims.\n\nCORPORATIONS\nMost people have heard that forming a corporation provides "limited liability" -- that is, it limits your personal liability for business debts. What you may not know is that there's more to creating and running a corporation than filing a few papers. You'll need to keep good records to handle the more complicated corporate tax return and, in order to retain your limited liability, you must follow corporate formalities involving decision making and record keeping. In short, you've got to be organized.\n\nLimited Personal Liability:\n\nOne of the main advantages of incorporating is that the owners' personal assets are protected from creditors of the corporation. For instance, if a court judgment is entered against your corporation saying that it owes a creditor $100,000, normally you can't be forced to use personal assets, such as your house, to pay the debt. Because only corporate assets need be used to pay business debts, you stand to lose only the money that you've invested in the corporation.
489925
Are you incorporating for privacy or tax benefits?  You are unlikely to realize significant US tax benefits from incorporating in Nevis, for a variety of reasons.  Sit down with a qualified international tax advisor -- not the one who persuaded you that Nevis was a good idea -- and have a serious discussion about the ramifications of your decision.\n\nOf course, you will have to report all the activities of your corporation to the IRS on Form 5471, attached to your own 1040.  You can be sure that the use of a Nevis company will attract lots of attention!
361319
You just have to go down to city hall and purchase a business license. If you choose not to incorporate, they normally require you to run an ad staing that you are doing business as whatever you decide to call your business.  Incportaions and LLC (limited liability company) allow you to limit personal liability in case some one sues you and there are some tax advantages. Most small companies incorporate as a Sub S which has tax advantages. You don't have to incorporate. You have to consider the possible litigation risks of the business you are in. If your husband works alone, the risks are minimal in woodworking. If he hires employees and begins using industrial strippers and stains that are highly toxic, the risk is very high. Photography would also seem to be a low risk for litigation type business. If you were hired to shoot a wedding that costs $500,000 and the party became upset with you and sued you for perceived damages, it could possibly be in the 100s of thousands of dollars. Incorporating limits the collection of judgements to th ebusiness keeping your personal assets (home, car, etc) safe, normally. Some attorneys have been able to "pierce the corporate veil" and go after personal assets.\n\nYou may want to just get started as a "dba" (doing business as)company and incorporate later.\n\nI am not an attorney but I have started many companies. You should talk to an attorney and an accountant if you have concerns about your taxes and personal assets.
48190
Quicker Tax Preparation: As a sole proprietor, filing your taxes is generally easier than a corporation.Simply file an individual income tax return (IRS Form 1040) including your business losses and profits. Your individual and business income are considered the same and self-employed tax implications will apply.\n\n\nLower Start-up Costs: Limited capital is a reality for many startups and small businesses. The costs of setting up and operating a corporation involves higher set-up fees and special forms. It's also not uncommon for a lawyer to be involved in forming a corporation.\n\n\nEase of Money Handling: Handling money for the business is easier than other legal business structures. No payroll set-up is required to pay yourself. To make it even easier, set up a separate bank account to keep your business funds separate and avoid co-mingling personal and business activities.
104493
Forming a limited liability company (LLC) is easy. Here are the steps you need to take to make your LLC a legal reality.\n\n1.Choose an available business name that complies with your state's LLC rules. \n2. File formal paperwork, usually called articles of organization, and pay the filing fee (ranging from $40 to $900, depending on the state). \n3. Create an LLC operating agreement, which sets out the rights and responsibilities of the LLC members. \n4. Publish a notice of your intent to form an LLC (required in only a few states). \n5. Obtain licenses and permits that may be required for your business. \n\nChoosing a Name for Your LLC\n---------------------------------------\nThe name of your LLC must comply with the rules of your state's LLC division. (Typically, this office is combined with the corporations division, and is part of the department or secretary of state's office.) While requirements differ from state to state, generally:\n\n---the name cannot be the same as the name of another LLC on file with the LLC office \n---the name must end with an LLC designator, such as "Limited Liability Company" or "Limited Company," or an abbreviation of one of these phrases (such as "LLC," "L.L.C.," or "Ltd. Liability Co.")\n---the name cannot include certain words prohibited by the state, such as Bank, Insurance, Corporation or City (states differ widely on prohibited terms). \n\nYour state's LLC office can tell you how to check if your proposed name is available for your use. Often, for a small fee, you can reserve your LLC name for a short period of time until you file your articles of organization.\n\nBesides following your state's LLC naming rules, you must make sure your name won't violate another company's trademark.\n\nOnce you've found a legal and available name, you don't usually need to register it with your state. When you file your articles of organization, your business name will be automatically registered.\n\nFiling Articles of Organization\n-----------------------------------------\nAfter settling on a name, you must prepare and file "articles of organization" with your state's LLC filing office. While most states use the term "articles of organization" to refer to the basic document creating an LLC, some states (including Delaware, Mississippi, New Hampshire, New Jersey, and Washington) use the term "certificate of formation." Two other states (Massachusetts and Pennsylvania) call the document a "certificate of organization."\n\nFiling Fees:\nOne disadvantage of forming an LLC instead of a partnership or a sole proprietorship is that you'll have to pay a filing fee when you submit your articles of organization. In most states, the fees are modest -- typically around $100. In a few others, they take a bigger bite: consider California ($70, plus an $800 annual tax), Illinois ($500), and Massachusetts ($500).\n\nRequired Information:\nArticles of organization are short, simple documents. In fact, you can usually prepare your own in just a few minutes by filling in the blanks and checking the boxes on a form provided by your state's filing office. Typically, you must provide only your LLC's name, its address, and sometimes the names of all of the owners -- called members. Generally, all of the LLC owners may prepare and sign the articles, or they can appoint just one person to do so.\n\nRegistered Agent:\nYou will probably also be required to list the name and address of a person -- usually one of the LLC members -- who will act as your LLC's "registered agent," or "agent for service of process." Your agent is the person who will receive legal papers in any future lawsuit involving your LLC.\n\nCreating an LLC Operating Agreement\n----------------------------------------\nEven though operating agreements need not be filed with the LLC filing office and
195827
Of course foreign-owned corporations can register as an LLC in the United States. You would register in one state only. Currently Nevada has the most benefits to registering as an LLC.\n\nHowever, there is no real advantage to being registered as a U.S. LLC other than for appearances. Some might consider it underhand to pose as an actual US company and not as a foreign entity operating inside the US. Another thing to consider is that you will be liable to pay US Federal taxes.