Business Registration

Sole Proprietorship * Partnership * Limited Liability Company * Corporation

Corporation
A corporation may be of two types: "S" or "C". A S-corporation may be chosen as long as there are fewer than 35 shareholders in the corporation. A qualifying S-corporation may choose to be generally exempt from federal income tax by making a Subchapter S Election wit the IRS. Its shareholders include in income their share of the corporationís separately stated items of income, deduction, loss, and credit, and their share of non-separately stated income or loss. This means that suits or other actions against your business will be directed at the corporation rather than at the individual. While there is no guarantee of protection under this form of business, it can serve to insulate the individual from the actions and obligations of the company.
A C-corporation is the form most corporations assume. A C-corporation is treated under tax law and for their purposes as an individual separate from the shareholders or owners of the company. This provides excellent protection from liability. The form of business you decide to take will depend on your personal circumstances. If, for example, you have extensive assets you need to protect, you might consider a corporation for your business.