Incorporation

Forming a corporation can be a little expensive, but it can also be a great benefit to many businesses.  The greatest of those benefits is that the president of the corporation is not personally liable for the debts of the corporation.  Therefore if the business for some unforeseen reason fails the president or officers of the corporation are not personally liable for the unpaid debts of the corporation.

There are two major types of corporations.  The first and most common type of small business corporation is what’s called the C- Corp.  The C-Corp’s income is taxed and the corporation itself pays the taxes due.

This is the major difference between a C-Corp and the second type of corporation or an S-Corp.  The S-Corp elects that the corporation itself is not taxed on its income, but instead that the taxes on the income are divided pro-rata among their share holders.

There are many factors to consider when deciding if a corporation is right for you business.  To further explore these options contact our office and set up an appointment to sit down with the attorney and discuss your unique situation. 

Forming and operating an LLC or a corporation is a bit more complicated and costly, but well worth the trouble for some small businesses. The main benefit of an LLC or a corporation is that these structures limit the owners' personal liability for business debts and court judgments against the business. If you would like to know what to expect before coming to our office, please see our Meeting with an Attorney section.