Business Essentials for The Bold Woman: Business Structure, Filing, Taxes
Are you ready to launch your business?
Read this blog for business filing information, business essentials, quick links, and legal documents needed to run a smooth ship!
LLC or S-Corp LLC?
Wondering which business filing structure is the best for your business? Check out this helpful article from Business News Daily.
Here are some important facts you can takeaway from the article.
- An LLC shields the personal assets of the members from business creditors. It is a pass-through entity, so LLC members report earnings on their personal tax returns.
- An S corporation is not a type of business – it is a type of tax election. The tax liability of S-corp sole proprietorships or partnerships belongs to the members, or shareholders. An LLC may also file as an S-corp.
- S-corps can't have more than 100 shareholders total, while an LLC can have an unlimited number of members. Additionally, S-corps can't have non-U.S. citizens as shareholders, but an LLC allows non-U.S. citizens to be members.
- Filing to become an LLC is a good approach to begin with, because this structure offers liability protection and tax write-offs. "Yes, there's the downside of having to pay self-employment taxes, but in an S-corp, the owners are required to take salaries under the IRS's reasonable compensation regulations."
- LLCs require business owners to file with the state the LLC was formed in, and these requirements may vary by state.
- For S-corps, you'll need to file articles of incorporation in the state where you want to incorporate. An annual shareholder's meeting and additional state reporting are also required.
Was that helpful?
When you're ready to file your brand as a legal business to start earning cash-flow, click the quick links below!
Address for Business Filing:
This Blog is provided by Crystal Ngumezi through P31 Bold at The Proverbs 31 Women's Organization.