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Thinking of launching a new venture? Or thinking of entering a new market segment? If you’re looking to take the next step in your business journey and explore newer opportunities, forming an LLC or another entity may be the right option for you. An organization can help your business remain focused on its core mission and objectives while also reducing the personal risk that comes with operating as an individual. However, there are several options available when it comes to creating a legal entity for your business. While some businesses choose to create an LLC, others may find that a corporation is more suitable for their needs. The type of legal entity you choose can also have an impact on things like taxes and liability. To help you decide which option is best for your company, here’s what you need to know about different types of businesses and how IA Group can help you: What is an LLC?An LLC stands for ‘Limited Liability Company’, which means that the owners of the company are not personally responsible for its debts and obligations. An LLC is a hybrid business structure that combines the pass-through taxation of a partnership or sole proprietorship with the asset protection and management advantages of a corporation. An LLC is a business structure that protects the personal assets of its owners in the event of a lawsuit. This means that if someone sues your business and wins, they cannot take your house or other personal assets. Unlike a sole proprietorship, partnership or corporation, an LLC provides its owners with protection from personal liability. In order to form an LLC, you must file articles of organization with your state government. This ensures that your business is recognized as a legitimate operation by both the government and the public at large. What is a Corporation?A corporation is a legal entity that’s created when a group of individuals come together to form a business. A corporation can be either public or private, where public means that company shares are traded on an exchange such as the New York Stock Exchange (NYSE) or the NASDAQ, and private means that shares are held by a small group of shareholders. Both types of corporations are owned by shareholders and overseen by a board of directors. While a corporation is a legal entity, it can be recognized as a person in certain contexts such as tax law and administrative law. And a corporation’s owners are known as shareholders. As a corporation’s owners are not personally liable for its obligations, it enjoys limited liability. Corporations may also be taxed separately from their owners.Want to learn more about IA Group’s work? Check out this page. |
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