Creating a separate entity such as c corporation or limited liability protects you from personal liability. It is always a good idea to set up a corporation or LLC to protect your assets. It is hard to say which entity is better because it all depends on the characteristics of your business and how you want to operate your business. When you set up a C Corporation, you are taxed twice - when the corporation earned the money and when you get paid dividends. You are also required to follow some corporate formalities - annual meeting, keeping minutes and so on. An LLC can be more flexible than a corporation. The LLC is a pass through entity meaning there is no corporate level tax return. All of the income and expenses are passed through to the owners who report their share of the income and expenses on their individual tax returns. Since you are a sole owner, you may be entitled to set up a S-Corporation if you meet certain other requirements. An S Corporation is a tax election a C Corporation can make in order to eliminate the corporate level tax. Good luck and congratulations on your new business!
Heewon O'Connor
O'Connor Law Offices
1920 A Highland Ave 203,Lombard, IL 60148
630-544-4922
http://oconnor-oconnor.com
Accident Law Basics, Motorcycle Accident Law, Car Accidents, Construction Accidents, Slip and Fall Accidents, Wrongful Death and
Bankruptcy Law Basics, Consumer Bankruptcy, Business Bankruptcy, Debt & Collections, Credit Problems and
Business Law Basics, Starting A Business, Types of Businesses, Naming A Business and
Child Custody Law Basics, Child Custody Procedure, Child Visitation, Father’s Rights, Modifying A Child Order and
Child Support Basics, Child Support Calculation, Failure to Pay Child Support, Modifying Child Support, and
Criminal Law Basics, Arrests and Searches, Drug Charges, Drunk Driving, Marijuana Laws, Juvenile Laws and
Drunk Driving Law Basics, DUI Checkpoints, DUI Testing, DUI Defenses and
Employment/ Labor Law Basics, Hiring & Firing, Wage & Hour, Job Discrimination, Sexual Harassment, Workers Compensation and
Estate Planning Basics, Elder Law, Living Wills, Probate, Trusts, Wills, and
Family Law Basics, Adoption, Divorce Law, Child Custody, Child Support, Spousal Support, Marriage and
Immigration Law Basics, Asylum, Citizenship, Green Cards, Permanent Residents, Visas and
Personal Injury Law Basics, Defective Products, Dangerous Drugs, Property Damage and
Real Estate Law Basics, Commercial Real Estate, Foreclosure, Landlord Tenants, Mortgages, Residential Real Estate, Zoning and
Real Estate Law Basics, Commercial Real Estate, Foreclosure, Landlord Tenants, Mortgages, Residential Real Estate, Zoning and
Social Security Law Basics, Applying for Benefits, Eligibility and
Traffic Law Basics, License Suspension, Traffic Court, Traffic Violations and
