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Business How to Start a Business (old) Forming Your Company Starting Steps

Posted by Nataliya Karablina
Nataliya Karablina
324 Points

Incorporation for LLC

Is it the same incorporation process for C/S-corp and LLC?

2 Answers

James Gill
PLUS
James Gill
Courses Plus Student 34,936 Points
James Gill
James Gill
Courses Plus Student 34,936 Points

Nataliya,

No. Incorporation rules vary by state in the US, but LLC is usually much simpler than C or S corp. LLCs are taxed like sole proprietorships, and don't have a lot of tax advantage; C and S corporations require a lot more paperwork and documentation of accounting steps (paying the owner, etc.) In order of complexity, it's LLC, S corp, then C corp.

In short, I strongly recommend avoiding C or S corp for yourself or a few people.

Nataliya Karablina
Nataliya Karablina
324 Points
Nataliya Karablina
Nataliya Karablina
324 Points

Thank you for your reply, James! That's very helpful!