L.l.c

Posted By admin On 12/10/21

LLC vs. Corporation: What's the Difference?

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WHAT DOES INCENTCO OFFER? INCENTCO’s cloud-based platforms provide businesses of all sizes the ability to easily implement a simple engagement, recognition & rewards, or performance management program in a gamified environment. A limited liability company, commonly referred to as an “LLC”, is a type of business structure commonly used in the United States. LLCs can be seen as a hybrid structure that combines features of. COVID-19 Update Information!!! As stated in AFL 20-35, under Expired Certification - A CNA whose certification expired within the previous 2 years, or whose certification will expire during the state of emergency, may work as a CNA for the duration of the declared emergency without renewal. Florida LLC Forms. Need to update Sunbiz ASAP? If your entity was formed prior to January 1 of this year, file your Annual Report or an Amended Annual Report using a credit card. An LLC, or Limited Liability Company, combines the best parts of corporations, sole proprietorships, and partnerships into one business entity offering owners liability protection, flexible management structure, and certain tax advantages.

L.l.c

Compare the advantages and disadvantages of each business entity type to find the one that's best for your company.

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LLCS-CorpC-CorpNon-ProfitSole Proprietorship
Managing your company
Limited liability protection
LLC members are not personally responsible for the company's debt or liability.S-Corp shareholders are not personally responsible for the company's debt or liability.C-Corp shareholders are not personally responsible for the company's debt or liability.Non-Profit directors are not personally responsible for organizational debt or liability.Sole Proprietors are personally responsible for debt and liability.
Perpetual existence varies
With the proper planning, limited liability companies can exist for generations.S-Corps continue to exist even if the owners or majority shareholders leave or pass away.C-Corps continue to exist even if the owners or majority shareholders leave or pass away.Non-Profit organizations and institutions survive after their directors leave.Sole Proprietorships do not exist when the owner quits or passes away.
Favorable for raising capital varies
Limited liability companies can raise money via banks and investors but cannot sell stocks.S-Corps can get loans from banks, as well as distribute stock to up to 100 people.C-Corps have the easiest time raising capital as there is no cap on how many people can own stock.Non-Profits can both get loans and receive tax-deductible donations.Sole Proprietorships can occasionally receive bank loans but cannot sell stocks.
Management flexibility
Limited liability companies allow for a large variety of management structures based on your specific needs.Management structures for S-Corps are largely dictated by state and federal law.Management schemas for C-Corps are largely dictated by state and federal law.NPOs need to follow strict management laws to guard their non-profit status.Since Sole Proprietorships have only one member, there is no management structure.
Tax Considerations
Pass-through taxes
LLC members are taxed on their personal tax returns. The LLC itself is not taxed.S-Corp shareholders are taxed on their personal tax returns. The company itself is not taxed.C-Corps are taxed both at the corporate level and again on shareholders' individual returns.Non-Profits are taxed on a corporate level but may also enjoy a host of tax-exempt benefits.Sole Proprietorships are taxed only on their owner's tax return.
Double taxation
Since limited liability companies can be a pass-through entity, owners are taxed on their personal income.S-Corp shareholders are taxed personally. The S-Corp, however, is not.C-Corp income is taxed at the corporate level first, then again at the personal level. This is called 'double taxation.'Non-Profits are only taxed once and can write off most of their expenses.Sole Proprietors are taxed only on their personal tax return.
Tax exemptions
Limited liability companies can claim deductions but not tax-exempt status.S-Corps can claim deductions but not tax-exempt status.C-Corporations are not tax-exempt entitiesNot only are donations to Non-Profits tax-exempt, but NPOs can themselves apply for tax-exempt status.Sole Proprietorships are the least official business entity and cannot claim tax exemption.
State government fees
Formation fees
Limited liability companies must pay state fees during the incorporation process. These fees can be deducted from taxes.S-Corps must pay state fees to legally incorporate. These fees can be deducted from taxes.C-Corps must pay state fees to become legally recognized. These fees can be deducted from taxes.Non-Profits pay state fees when they incorporate. These fees can be deducted from taxes.Since Sole Proprietorships aren't incorporated entities, they don't pay formation or compliance fees.
Compliance fees
While limited liability companies have less compliance requirements than other entity types, there are reports and licenses that need to be filed and maintained.S-Corps usually will need to file reports and pay compliance fees on an annual or semi-annual basis.C-Corps generally must file reports with their state, as well as a host of other regulatory and compliance fees.Non-Profits have more compliance responsibilities than other entities as they must continually preserve their tax-exempt status.Sole Proprietors do not have ongoing compliance fees.