What is a limited liability company (LLC)
Is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.
An LLC is not a corporation under state law; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. LLCs are well known for the flexibility that they provide to business owners; depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership. In certain U.S. states (for example, Texas), businesses that provide professional services requiring a state professional license, such as legal or medical services, may not be allowed to form an LLC but may be required to form a similar entity called a professional limited liability company (PLLC).
What is a Corporation?
A corporation is a distinct legal business entity, meaning the business owns property, pays taxes,
and enters into contracts separate from its owners. The ownership and management structure of a corporation is different from other business ntities. The owners of a corporation are shareholders (also known as stockholders) who obtain interest in the business by purchasing shares of stock.
Shareholders elect a board of directors, who are responsible for managing the corporation. One of the main advantages of incorporating is that the owners’ personal assets are protected from creditors of the corporation. For instance, if a court judgment is entered against your corporation saying that it owes a creditor $100,000, you can’t be forced to use personal assets, such as your house, to pay the debt. Because only corporate assets need be used to pay business debts, you stand to lose only the money that you’ve invested in the corporation.
What is a Nonprofit Corporation
A nonprofit corporation is an organization formed to serve the public good, such as for charitable, religious, educational, or other public service reasons, rather than purely for the creation of profit itself, as businesses aim to do. The biggest benefit of choosing this form of legal entity is that it is exempt from paying federal and state taxes on any income the corporation earns, unlike for-profit corporations.
The most common tax exemption for nonprofits comes from Internal Revenue Service (IRS) Code Section 501(c)(3), which is why such organizations are often called 501(c)(3) corporations. Essentially, a nonprofit corporation is created and managed much like a for-profit corporation, except that instead of dividing the year-end profits among the employees or shareholders, as public corporations do through dividends, nonprofit corporations reinvest any money earned back into its own operation, to serve more people.
|LLC Executive Package||Corporation Executive Package||Non-Profit Package|
|Articles of Organization|
|Articles of Incorporation|
|Statement of Information/ or initial officers list|
|Initial Minutes (recoupment)|
|Resolution letter (Banking)|
|EIN – SS-4 IRS Form|
|IRS Form 2553|
|Corporate kit with Corporate seal|
|3 – 1 hour business consulting on company set up|
|1 – 1 hour accounting/Tax consultation|
|IRS Form 1023 exemption|
|IRS Form 3500 annual fee waiver|