The go-to for those looking for something easy to run, but yet provides personal liability protection. An LLC itself does not pay taxes as profits and losses are passed through to its owners who report them on their personal filings.
A business entity which allows for an unlimited number of individuals or companies to own a portion of the company by distributing shares of stock. This is the type of business entity to use if you plan on raising funds from investors.
Filing paperwork with the appropriate state agency is the first step in the process, but there are a series of formalities that a newly formed company must take such as drafting and enacting bylaws, operating agreements, issuing stock and filing for an EIN number.
A unique business type which can be a corporation, limited partnership or LLC that has made a special “S” election with the IRS. Taxes also pass-through in an S-Corp, and ownership can be easily transferred through the sale of stock.
Think of an LLC operating agreement for a limited liability company as a prenuptial agreement for your business. It provides owners a detailed framework for various business and functional issues that may arise.