Are you thinking about starting a company? Registering one can sometimes be a hassle. Aside from all the paperwork, you also need to know the different types of companies that exist. Some companies have more advantages compared to others. What you register will depend on the goals of your business and a variety of other factors. Highlighted here are two types of companies you can register. These are type c corporations and LLC companies. Here are some of the things you need to know.
What is an LLC?
LLC simply stands for a limited liability company. This means that the business is a different legal entity than yourself. As such, it comes with various advantages that you should know. Some of the advantages of an LLC are as follows:
Flexibility with Taxes
In this type of company, you have the option of deciding how you want to be taxed. The IRS does not consider the LLC as a separate tax entity. As such you can either choose to be taxed as a single member, partners in an LLC or filling as a corporation. All of your question about benefits of an LLC will be answered when you follow the link.
Paperwork is Less
When compared to S-corps and C-corps, an LLC has much less paperwork. If you do not like all the paperwork involved in business setup and other parts of the business, this is what you need to go for.
Just like corporations LLC give members protection from liability. That means that members of the company are not liable personally with regards to things such as court judgments and debts.
You might already be thinking that you need to register an LLC company. Just hang on to that thought as you get to find out about C-Corps and some of the advantages that come with a C-Corp company below.
Just like the LLC, the C-Corp companies are created to allow business people to invest without fear of liability. The following are some of the benefits of a C-Corp :
Shareholders are Unlimited
One of the good things about these companies is that shareholders can come from any part of the world and they are unlimited. Get attached to us now and learn some lesson about the c corporation vs LLC.
Easy to Raise Capital
Another benefit of a C-corporation is that it can easily raise capital. This is because of the stocks they can sell. This is something that makes the C-Corp company quite popular with many people in the world of business.
You can also check out other types of companies you can start. However, before deciding on whether you need to start a C-Corp or an LLC it helps to consult with a business advisor or a business lawyer.