Fort Lauderdale Business Lawyer

Get More Information: Common Questions and Answers

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  What is the difference between a LLC, Inc., and Corp., and which one is best for my business?

  These three different types of designations come with perks and drawbacks, and vary based on your needs. An LLC protects you from personal liability, has an unlimited number of owners, no annual meeting required, but does not allow you to hold stock or corporate income splits. A corporation of any kind can issue stock and use corporate income splitting, but hold an annual meeting. Incorporation means that you've created a separate legal entity which occurs during the formation stage of your business, and requires filing an Articles of Incorporation and other legalese.

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  What is the difference between an S-Corp and C-Corp?

  In short, all companies start as a C-Corp, which means paying fees to start up, being taxed on the levels of a company as well as shareholder, increased IRS scrutiny, and no ability to deduct losses on personal tax returns. An S-Corp, on the other hand, is a status more suited to small businesses, since it protects against personal liability and has more tax benefits. The requirements include having a maximum of 100 shareholders, being owned by a U.S. citizen or permanent resident, and have only one stock class.

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  What state should I incorporate in?

  Although many Florida-based businesses choose to incorporate in their home state, there are perks to doing so in other states and completely up to each business owner. This includes laws in other states that are more entrepreneur-friendly, well defined business law, and no tax on certain types of transactions.

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  How do I incorporate?

  You must first decide what state holds the most benefits for you to incorporate in, and then declare your incorporation status to the secretary of state. From there, you will need to file various documents and forms required by state law.