Corporations. Ahhh… my favorite category of company structure. Here’s why. Corporation: a legal entity that separates personal assets of the owners (shareholders) from the firm’s assets. Nice and tidy. Limited Liability (aka LLC): creditors can seize the corporation’s assets but have no recourse against the shareholders’ personal assets. Good. An LLC is a business organization owned by “members” (shareholders) with limited liability. The major Incentive for organizing as an LLC is that earnings can be taxed at the personal income tax rates of the members. S Corporation: provides limited liability for shareholders plus corporate income is taxed like personal income to the shareholders. Good.
Tomorrow we’ll go over some of the criteria for choosing which type of set up is best for your company.
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Christine Comaford, CEO Freedom Fighter
CEO of Mighty Ventures, Inc.
NY Times Best Selling Author of “Rules for Renegades”