Business Formation: Understanding the Differences Between LLCs and Corporations

Business formation is a crucial step in starting a new business, and it is essential to understand the different types of business entities available to you. Here are some areas of additional clarity and their explanations:

Corporate formation attorney: A corporate formation attorney is a legal professional who specializes in helping businesses incorporate and form corporations. They can help you navigate the legal requirements of forming a corporation and ensure that you comply with state and federal laws.

What is a corporation?: A corporation is a legal entity that is separate from its owners. It is created by filing articles of incorporation with the state and is owned by shareholders. Corporations offer limited liability protection to their owners, which means that the owners are not personally liable for the debts and obligations of the corporation.

Is an LLC a corporation?: No, an LLC is not a corporation. An LLC, or limited liability company, is a type of business entity that combines the liability protection of a corporation with the tax benefits of a partnership. LLCs are owned by members and are not required to hold annual meetings or follow other formalities that corporations are required to follow.

What’s the difference between an LLC and a corporation?: The main differences between an LLC and a corporation are in their ownership structure, management, and taxation. LLCs are owned by members and are managed by either the members or a designated manager. Corporations are owned by shareholders and are managed by a board of directors. LLCs are taxed as pass-through entities, which means that the profits and losses of the business are passed through to the members and are reported on their personal tax returns. Corporations are taxed as separate entities, meaning the corporation pays taxes on its profits, and the shareholders pay taxes on any dividends they receive.

What’s an LLC?: An LLC, or limited liability company, is a business entity that offers limited liability protection to its owners. LLCs are owned by members and are not required to hold annual meetings or follow other formalities that corporations are required to follow.

What is an LLC?: An LLC, or limited liability company, is a type of business entity that combines a corporation’s liability protection with a partnership’s tax benefits. Members own LLCs and are not required to hold annual meetings or follow other formalities that corporations are required to follow.

Business formation: Business formation is creating a new business entity. This can involve choosing a business name, registering the business with the state, obtaining any necessary licenses and permits, and making the business’s legal structure.

Business formation attorney: A business formation attorney is a legal professional who specializes in helping businesses create new entities. They can help you navigate the legal requirements of forming a new business and ensure that you comply with state and federal laws.

What happens to an LLC when the owner dies?: When the owner of an LLC dies, the LLC does not automatically dissolve. Instead, the LLC is usually dissolved according to the terms of the operating agreement or the state law that governs LLCs. Sometimes, the LLC may continue to operate with the deceased owner’s heirs or other designated individuals.

Attorney for LLC near me: If you are looking for an attorney to help you with your LLC, you can search for “attorney for LLC near me” or “LLC formation attorney near me” online. This should provide you with a list of local attorneys focused on business formation and can help you create your LLC.

I hope this information is helpful to you and your readers. If you have any further questions or need assistance with business formation, please don’t hesitate to contact McBrien | Armistead Law Group.