Company Formation

We help you decide what type of company is best suited for your needs through offering the best company formation services across the US.

We help you choose between:

  1. LLC
  2. C corporation
  3. S Corporation

C corporation vs. S corporation vs. LLC.

C Corp

S Corp

LLC

Formation Requirements, Costs Must file with state, state specific filing fee required Must file with state, state specific filing fee required. Must file with state, state specific filing fee required.
Liability Shareholders granted personal protection from debts and liabilities of business Shareholders granted personal protection from debts and liabilities of business Separate entity from partners but members may be held liable for non fiscal obligations.
Administrative Requirements Election of board of directors/officers, annual meetings, and annual report filing requirements. Election of board of directors/officers, annual meetings, and annual report filing requirements. Relatively few requirements.
Management Shareholders need to elect directors, who manages business. Shareholders need to elect directors, who manages business. Memebers can setup their own structures
Term Perpetual: can extend past death or withdrawal of shareholders. Perpetual: can extend past death or withdrawal of shareholders. Perpetual, unless state requires fixed amount of time.
Taxation Double taxation (Company income is taxed at corporate tax rate; shareholders also pay tax on dividends or profits distributed) Profits and losses pass through the corp and reported to the individual tax return of shareholder Profits and losses pass through the LLC and reported to the individual tax return of shareholder
Self-Employment Tax Break Salary subject to self employment tax. Profits of the S-Corp which pass through to the shareholders are not subject to self-employment tax. Rather, self-employment is only taxed on the portion classified as a "reasonable salary". LLC members must pay self-employment tax on all income from the LLC.
Formalities Must file an C-Corporation annual income tax return each year (IRS Form 1120).

Must file annual report with Secretary of State, and a reporting fee of $25 and a statement of information are required 90 days after formation.

Must maintain corporate formalities such as: Drafting Bylaws, Minutes, Annual Meetings, issuance of stock, to keep a paper a trail of financial dealings between the corporation and its shareholders, and to avoid "piercing of the corporate veil.

Must file an S-Corporation annual income tax return each year (IRS Form 1120S).

Must file annual report with Secretary of State, and a reporting fee of $25 and a statement of information are required 90 days after formation.

Must maintain corporate formalities such as: Drafting Bylaws, Minutes, Annual Meetings, issuance of stock, to keep a paper a trail of financial dealings between the corporation and its shareholders, and to avoid "piercing of the corporate veil.

Very little formalities required. Operating agreement is recommended, annual meetings not required.

A reporting fee of $25 and a statement of information are required 90 days after formation and then every two years.

Continuity of Life Indefinite term Indefinite term Indefinite term

BBB-A--Rating