Main Differences Between a Corporation and an LLC
Limited liability companies (referred to as LLCs) are a type of business entity that have a few of the same features as a corporation, but are overall more flexible in their business operation. Choosing to schedule a consultation with the right Fort Lauderdale business formation attorney can help you to better understand the differences between an LLC and a corporation, and can be a vital step when starting your own business.
The business structure of an LLC versus a corporation
The structure of an LLC is made with a certain amount flexibility that allows the business owners to be involved in the management of the company. This also means that either the company’s members can be in charge of the LLC’s daily operation, or that they can hire managers that are non-members and put them in charge of the business’s regular activities.
Corporation shareholders do not have this option, as corporations have a very rigid business structure that has shareholders rather uninvolved with the affairs of the company. Instead, directors are in charge of allocating resources and increasing the profits for the shareholders, and officers are employed as management of the company’s daily operation.
Advantages to having an LLC over a corporation
When you schedule your consultation with a business formation attorney in Fort Lauderdale, you will learn about the many benefits of starting an LLC and why this structure might work for your business. Among these advantages, there are several key points that stand out from the rest.
One of the biggest advantages in choosing to create an LLC instead of a corporation is that business owners will avoid double taxation. Unlike corporations, LLCs are treated as “pass-through” entities. This means that there is no corporate tax return to file, and business owners only need to report their own shares of profit and loss on individual tax returns.
Owners of an LLC do not need to be citizens of the U.S. or permanent residents, which makes it a good business structure choice for non-residents. An LLC has more legal protection, where business owners have limited liability for business related debts and obligations.
When you are ready to start a new business, one of the best moves you can make early on is to hire an attorney for a consultation. Mark Schecter is an experienced Fort Lauderdale business formation attorney who can assist you in understanding the business structure options available to you and will help you make the best choice for your business needs.
For more information or to schedule a consultation regarding your business formation, contact Schecter Law today at (954) 779-7009.