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For those business owners who are contemplating the formation of a Nevada corporation, there is another entity known as a limited liability company. This form of ownership has, as its major attribute, the limiting of liability, as its title suggests. In other words, members of the company are not personally liable for the liabilities of the company (just as the shareholders are protected in a corporation). Further, income taxation may be passed directly through to the members and the company does not suffer double taxation (once to the company and to the members of the company upon distribution of profits), as does a non-subchapter S corporation. Foreign nationals and corporations may not have ownership in a subchapter S corporation, but may own interests in an LLC. The LLC may also choose to be taxed as a partnership or as a corporation. An LLC has added flexibility in that it need not be as formally operated as a corporation. (i.e. there do not have to be annual meetings, minutes of meetings, etc) Distributions to owners need not be made in direct proportion to the investments, unlike corporations that require distribution in direct proportion to the stock ownership. Last, an LLC may be formed to last for a particular period of time, whereby a corporation is always perpetual and requires expense and time to dissolve it. One should always be aware of the "maintenance costs" of an entity. For example, an annual list of officers must be filed for a Nevada corporation or LLC at a cost of $125 per year. In California, the list filling fee is only $25. Other states charge varying fees for these lists Our corporation specialist will inform you of the present maintenance cost of any entity in any state for your convenience. Corp95 will form either a corporation or a limited liability company for the same low fee of $69.00 plus the state filing fee. The choice of forming a limited liability company or corporation is one which must focus on the individual needs of the business owner and if there is some question, it should be resolved by consultation with a qualified attorney. CORP 95 DOES NOT GIVE LEGAL ADVICE. |
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