Start a LLC or Corporation Anywhere
Start a LLC, Any State. Forming a corporation is a big step in a company’s journey. In fact, the dream of every partnership and start-up. However, it is not a stroll in the park. Considering the fact that, there are a variety of options available, such as an LLC (Limited Liability Company), S-Corporation and C-Corporation.Yet for early-stage companies, the LLC is generally the most popular. Why is this so?
Firstly, it involves Less Paperwork and Procedures.Start a LLC, Any State and let us help you do so.Managing a business is not the easiest thing to do, therefore, you need to work smart. The LLC Act was created– in the 1970s – to make the process less onerous and cut down on the to-do list. Interestingly,all you need do for most states is just retain NBHS and we do the work for you.
NBHS has been helping businesses for many years’ Start a LLC the right way.For a single-member LLC, this means that preparing a tax return is usually easy. You will need to file a Schedule SE for self-employment taxes and also a Schedule C to detail the revenues and deductions. On the other hand,with a multi-member LLC, things get sexier in a complicated manner. For example, you will need to file a partnership return-called a 1065-and K-1’s for each member, which shows the allocations of profits, losses and credits.
It would interest you to know that, with the pass-through feature, you may be able to deduct losses against other income, which is not a bad bargain after all. Well, maybe that is not important, another added benefit is that the LLC allows you to elect to be taxed as a C-Corporation or an S-Corporation. Clearly, a shrewd business owner would want to compare the different options to select that which provides the maximum tax benefits. Allowing us to help you Start a LLC can help you save time and money.
Again, as the name implies, it is structured as a Limited Liability, which is probably the biggest attraction of an LLC (keep in mind that you get limited liability protection from a C-Corp and S-Corp too). For the non-business savvy, this means that you can generally protect your personal assets if there is litigation or bankruptcy of your company. However, it should be noted that, this is not absolute. If you are grossly negligent, engage in a fraud or commit a crime, then you will likely not get limited liability protection. This is also likely to be the case with signing a lease or getting a loan from a bank (alas, you will probably have to sign a personal guarantee).
Lastly, on Estate Planning. An LLC can be placed in a living trust, which can provide for tax benefits and better estate planning. But of course, this is a highly complicated topic and really needs the help of a qualified attorney.
The downsides of an LCC? Indeed, the LLC model is not ideal for all businesses. In fact, one of the biggest disadvantages is that it is not particularly good for raising funds, especially from Venture Capitalists (VCs). It is tough to structure protections in stock (such as priorities with dividends and liquidations), again, the governance tends to be too flexible (there is no board of directors) and even the pass-through tax feature can be a problem, this is because VCs may have tax-exempt investors. So, if your wish is to raise a “significant” amount of funds, you probably should instead look at the C-Corp. For the most part, the LLC will likely just make things too complicated and may even scare away potential investors.