Do you want to start a business but aren’t sure what kind of business to form? Have you been researching the different types of business entities yet don’t know which is right for your specific needs? Do you have to choose between an LLc, a Partnership and Corporation? Forming a business entity is, at the risk of understatement, a big decision. Here at The Corporation Center, we’ve helped so many to be able to be able to form a business that can grow. Below are brief descriptions of some of the most common business entities that people form through our site. If you have more questions, don’t hesitate to reach out to our live agents.
When it comes to two people owning a business together, there’s no structure simpler than a partnership. Two of the most common types of these are LLPs (“Limited Liability Partnerships”) and LPs (“Limited Partnerships”). In the former, every owner has limited liability. Each partner is protected from any debts against the partnership itself.
In an LP, there is one general partner who has unlimited liability. The other partners’ liability is limited. Now, in an LP, the control the limited liability partners have over the company tends to be limited in and of itself. Some states (such as Delaware) also offer a Limited Liability Limited Partnership as well.
In a Corporation, the owners and shareholders have limited personal liability or debts related to the business. That’s also one of the major differences between a corporation and other types of entities: stock can be sold to raise capital. The corporation itself is a separate taxable entity. When there are profits, those corporate profits are split among the owners as well as the corporation.
In terms of providing protection to owners from personal liability, corporations offer very strong protection. Forming a corporation can be a good idea for a business that is designed to go public, to raise money, and so forth.
The Limited Liability Company (LLC) is perhaps the most popular choice of business entity at our site. It provides many of the benefits of both partnerships as well as corporations. For example, in regards to protection, an LLC protects your personal assets in the event that the LLC fails or there’s a lawsuit brought against it. You’ll pay a lower tax rate than you would with a corporation. By that same token, without dealing with corporate taxes, you can pass profits and losses through to your personal income as well.
Form Your LLC, Partnership, and Corporation With Us
The above paragraphs touch on just a few factors of the most popular options at our site. There are many other entities, some specific to particular states and regions. If you know what kind of business entity you want to form, simply come to our site, complete the documentation, and you can get it all set up very quickly. If, on the other hand, you want to speak to an expert, our live agents are here to help with your applications.