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Types of Corporations

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rowel2202
(@rowel2202)
Trusted Member Registered

A tech startup can incorporate in a variety of ways, but the most popular are an LLC, C-Corp, or S-Corp. Each type has advantages and disadvantages, and your decision can assist or damage your business as it expands. As a result, it's critical to comprehend and balance these benefits and draw conclusions about which option is ideal for your business. The C-Corp form is often favored since it facilitates outside investment if the firm is aiming to develop via it. The form of company will be determined by what type of business you have, how you want to pay taxes, and how much you want to reward shareholders.

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Posted : 24/06/2021 8:18 pm
gfashaw
(@gfashaw)
Eminent Member Registered

At this time I would start an LLC.  I would start an LLC because it is cheaper and easier to start.  An LLC will still provide the legal protection that I would need when operating a business.  I would hope to start an corporation later down the line for growth purposes.  It seems as though growth through stocks and other financial tools is better suited for a corporation.  

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Posted : 27/06/2021 10:06 pm
gfashaw
(@gfashaw)
Eminent Member Registered

@jafar The fact that the fate of the business is not connected to any individual owner upon there death is extremely important.  The flexibility with ownership makes comfort in longevity a lot easier.  I would love to do further research on the benefits of an LLC in specific industries like medical devices and biotechnology.  I'm interested to see how most of those organizations are structured and model any venture I may begin after them.  

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Posted : 27/06/2021 10:11 pm
Naglaa Hemida
(@naglaa-hemida)
Trusted Member Registered

I might decide on a confined partnership corp. due to the fact being a confined associate places a difficulty on legal responsibility with recognize each to ability proceedings and money; the confined associate is handiest going to be responsible for the quantity of capital it contributed to the enterprise; a enterprise creditor can't come after the confined associate's non-public assets. It is likewise less difficult to draw traders due to the fact confined companions have confined legal responsibility to the enterprise debts. Profits and losses byskip thru the enterprise to the companions, who're taxed on their very own non-public profits tax returns (one-time tax) and sooner or later much less paperwork. Like Dr. Simon has stated approximately a domestic bakery, if I had been to open a small espresso shop/bakery, then this will be perfect for me.

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Posted : 10/10/2021 8:10 pm
mcr29
(@mrela13)
Eminent Member Registered

If I had ownership of my own company, I would definitely prefer to own it as a sole proprietor rather than anything else. I would do this to have total control over the company and be able to run it the way I want to, without any outside input. While I would be taking on much more of a financial risk, I do believe that my ability to work hard and stay determined would allow me to be successful. Also, the tax benefits as a sole proprietorship are very lucrative and can help you in both your cooperate and personal lives. While the risk may be greater, I feel that I would get more benefit out of running a sole proprietorship than any other form of corporation.

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Posted : 09/12/2021 10:12 pm
salston
(@salston)
Eminent Member Registered

If I were able to have ownership of a corporation, I would want to be an owner of a Limited Liability Company (LLC). Limited Liability Companies are popular due to their basic benefits of liability protection and typically used by a single owner or a partnership. LLCs protect the owners’ personal assets from losses, company debts, or court rulings against the company. LLCs may also provide some tax benefits since they are taxed different than a traditional corporation. Business operations for LLCs are much simpler than other corporate structures, and the requirements are minimal. LLCs are urged to follow the same guidelines as S Corporations they are not legally required to do so.

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Posted : 26/03/2022 11:35 am
daryllynnn
(@daryllynnn)
Eminent Member Registered
Posted by: @bb254

If you were to have ownership of a corporation, which type of corporation would you want to be an owner of?
a. Sole Proprietorship
b. Partnership
c. Limited Liability Partnership
d. Limited Liability Company
e. Running Corporation
f. Corporation (S Corp. or C Corp.)
State both the pros and cons of entering that specific type of corporation.

For example,
I would want to be a part of a Limited Liability Corporation because there is limited risk among owners. I would have complete control along with other owners over the corporation. The taxes on the corporation are not as complex as a C corp. and owners would be able to complete all the profit. However, an LLP is not recognized in all states. If one of the partners in this partnership dies then the whole corporation dies also.

Although there is more of a pressure and sole financial responsibility on me, I would want to be a part of a sole proprietorship. Many of the most challenging obstacles business owners face in the beginning is starting. As a sole proprietor, all I need to do is... start. By being a sole proprietor I have the ability to immediately begin to sell goods without having to wait for paperwork approval. As a sole proprietor I am not held to paying a corporate tax on business profits of 21% like C-corporations. Usually, sole proprietors are exempt from state franchise and excises taxes.

The possible cons of being a sole proprietor there is the risk of not having some of the protections that S-Corporations or C-Corporations have. Some of risk involve being responsible for the expenses and debts my business accumulates, civil damages, or property related injury. 

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Posted : 26/03/2022 9:54 pm
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