The simplest and most flexible business structure to protect your personal assets.
This more complex structure can issue shares or take the business public.
This ensures you or other partners aren’t personally on the hook for company debts and liabilities
Corporations require a board of directors, annual meetings, record keeping, and more. LLCs and sole proprietorships also have rules, but they’re less strict.
After you form, there are annual report and other filing requirements to keep your business in good standing with the state.
Taxes are passed through the business and paid for by the sole proprietor or owners of the LLC based on their income or profits.
Profits are taxed to the corporation and then taxed again when distributed as dividends to the shareholders. This creates a double tax.
Able to acces funds from banks, venture capital firms, and foundations.
Have the option for an initial public offering (IPO) to sell shares on the stock market.
From developing an idea, to making it official, to turning it into a money-making business, our platform has you covered.
We collect and file all the necessary paperwork with the state to form your official business accurately and on time, guaranteed.
Our team recommends services to help you effectively run your business like ongoing compliance, banking, and accounting.
Start making money faster by using services for payments and invoicing, customizing a website, or marketing your business online.
Includes 24/7 access to ongoing resources, guides, tools, and our customer support team all from your platform whenever you need it.
This allows LLC owners to lower their self-employment taxes if certain requirements are met.
By default, an LLC is taxed as a pass-through entity, just as a sole proprietorship or general partnership. That means LLC owners pay self-employment taxes (about 15.3%) on all profits. This is more than the taxes you would pay when working for someone else because your employer would pay part of them.
Instead of paying self-employment taxes on all their profits, owners of an S-corp only pay self-employment taxes on any reasonable salary they pay themselves. The owners avoid paying self-employment taxes on the remaining profits which can save these owners a meaningful amount of money on taxes.
Yes, the limited liability company (LLC) is one of the most popular business entity forms in many states. Unlike S-corp, which is a classification, an LLC refers to the business structure itself, which can be taxed in a number of different ways. With an S-corp election, the LLC’s profits and losses flow through the entity to its members, who pay personal income tax on earnings.
Yes, your company will still remain an LLC, but it can be taxed as an S-corp. To request that the IRS taxes your LLC income as an S corporation return, you need to complete two forms. First, complete Form 8832, Entity Classification Election, which asks the IRS to classify your business as a corporation for federal tax information. Then, file Form 2553, Election by a Small Business Corporation, to be treated as an S corp instead of an LLC.
It is usually best to form an LLC in the state where your business is located.
No. You can form an LLC by yourself. There is no requirement to use a lawyer. Sign up with ZenBusiness today for expert help navigating the process.
If your LLC is filed as a corporation, you won’t need a 1099 for the business. However, if your LLC employs independent contractors, you will need to file 1099 forms for these individuals.