Company Incorporations/Formations

Company formation or incorporation independently is a difficult task. There are many aspects that you need to keep in mind to make sure that you are on the right path. The first step is to decide which kind of business you want to start.

In the USA, there are several types of business entities –

• Corporation: This entity has a corporate wall that separates it from the owners. It might be run by multiple people (termed as directors) or a single person. As compared to other business entities, the tax process in a corporation is tough.
• Sole Proprietorship: This business is managed and owned by a single trader. There is no particular difference between him and the business. The entire profit and loss are accrued by the owner, and the business enjoys tax exemption.
• Partnership: This entity is formed by two or more people or businesses who come to an agreement. They share the profits and losses. While the partnership doesn’t have to pay any taxes, it only has to file the information report with the government. The report declares how all the profits and losses are allocated among the business partners.
• Limited Liability Company: LLC is a highly flexible business entity in which members might or might not enjoy limited liability. This business might or might not have managers and can decide whether they want to be taxed as partners or a corporation. They might also be exempted from paying the tax, depending on the situation.