Do you need help deciding between an LLC, C-Corp, or S-Corp? Follow our step-by-step guide to find the right option for your company.
Need help deciding between LLC, C-Corp, or S-Corp? Follow our step-by-step guide to find the right option for your company.
The simplest and most flexible business structure to protect your personal assets.Start an LLC
This more complex structure can issue shares or take the business public.Start a Corporation
This tax designation avoids double taxation when your LLC is profitable.Start an S-Corp
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 your 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.
Get the worry free services and expert support you need to start, run, and grow a successful business.
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.
It varies by state, but the standard time frame is two to three weeks from when the state receives your documents, whether online or by mail, but can be expedited for an additional fee.
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.
The steps may vary state to state, so check your state’s LLC dissolution procedures. Generally, the timeline is the same. You must file the Articles of Dissolution with your Secretary of State, and then file cancellations in any other states that your LLC does business in.
Next, you must file your final tax return, pay any final payroll taxes, and close your EIN. There is a lot of paperwork and steps involved in the process. ZenBusiness can help ensure that you successfully dissolve your LLC without any hiccups along the way.
Yes. Since an S corporation is a business entity, it can be the owner (or a member of) an LLC, but an LLC cannot own an S corporation — only individuals can own an S-Corp.
However, an LLC can be taxed as an S corporation if it meets an S corporation’s eligibility requirements, which include having a limited number of shareholders who are U.S. citizens. To find out if your LLC is eligible, sign up with ZenBusiness today.
Yes, but it’s not all that common. Certain requirements must be met, and it can be a little confusing to understand all of the legalities. It’s always wise to seek a legal and/or financial professional when considering these questions.