Business Corporate Entity Selection Services
The primary benefit of forming a corporation, LLC or other business entity is the limited liability protection that a business entity provides the business owners. This limited liability protection, which is also known as the corporate veil, protects a business owner’s personal assets, like a house or car, from the claims of the business creditors. However, there are also taxation and revenue considerations as well.
As for tax considerations, an LLC is unique in that it can be taxed as a disregarded entity, partnership, C corp or an S corp. Unless an LLC elects corporate tax classification by filing Form 8832 (C corp) or Form 2553 (S corp) with the IRS when it is formed, a single member or owner LLC is taxed as a disregarded entity and a multiple member or owner LLC is taxed as a partnership. A disregarded entity is taxed as a sole proprietorship when the business is engaged in active trade or business activities.
Creative Accounting is well versed in the structure, limitations and advantages of each of the various Corporation Entities. We are experts in helping you and your business decide which corporate structure is the best fit for your situation. We will then help you set up your corporation and continue to manage your accounts in the way that is necessary and correct under this corporate entity.