Do I need an attorney to handle my business formation?
It is not necessary to employ an attorney to form your corporation or LLC. You can legally file the documents on your own or have someone of your choosing who acts as an incorporator prepare your documents with the information you provide.

What is a Limited Liability Company?

LLC’s provide limited liability protection to their owners and pass through taxation.

What is an S corporation?
S corporations offer the same advantages of standard corporations without double taxation, because they elected a special status with the IRS.

Advantages of an S Corp:

Limited Liability Protection. Owners are not typically responsible for business debts and liabilities.
Pass-through taxation. No tax is paid at the business level on the corporation’s profits. Income/loss is reported on the owner’s personal income tax returns and any tax due is paid at the individual level.
Easy Transfer of Ownership. Ownership is easily transferable through the sale of stock.
Unlimited life. When a corporation’s owner incurs a disabling illness or dies, the corporation does not cease to exist.
Raise capital more easily. Additional capital can be raised by selling shares of stock.
Credibility. Corporations may be perceived as a more professional/legitimate entity than a sole proprietorship or general partnership.
Lower Audit Risk. Generally, S corporations are audited less frequently than sole proprietorships.

What is a C Corp?

Limited liability protection. Owners are not typically responsible for business debts and liabilities.
Unlimited owners. C corporations can have an unlimited number of shareholders.
Easy transfer of ownership. Ownership is easily transferable through the sale of stock.
Unlimited life. When a corporation’s owner incurs a disabling illness or dies, the corporation does not cease to exist.
Raise capital more easily. Additional capital can be raised by selling shares of stock.
Credibility. Corporations may be perceived as a more professional/legitimate Entity than a sole proprietorship or general partnership.
Lower audit risk. Generally C corporations are audited less frequently than sole proprietorships.

What is a non-profit corporation?

A non-profit is a corporation or organization formed for purposes other than making a profit. Like standard for-profit corporations, nonprofits provide limited liability protection.

Advantages of a non-profit:

Limited liability protection. Directors and officers are typically not personally responsible for the nonprofit’s debts and liabilities.
Tax Exempt Status: Non-profits can apply for both federal and state exempt status.
Access to Grants. Most non-profits are eligible to receive public and private grants, making it easier to get operating capital. Tax Deductible Donations. With 501 c 3 non-profits, donations made by individuals to the non-profit are tax deductible.