Like a Corporation, an LLC offers limited liability to its owners. Unlike a Corporation, however, an LLC is taxed as a Partnership or Sole Proprietorship (unless the LLC elects to be taxed as a Corporation). This allows an LLC to pass all its income and losses through to the owners. Furthermore, the LLC has an advantage over a C-Corporation which makes an S-Corporation tax election because the S-Corporation can only have 100 stockholders and the stockholders cannot be Corporations or non-U.S.

Both types of entities provide protection to the individual owners from liability to creditors. The LLC, however, allows the owners to select the tax treatment of a partnership, so that there is no tax at the company level, with profits and losses flowing through to the individual owners. You should seek immediate advice from an experience Coover & Bar attorney. Your lawyer will advise you on your rights and obligations as a partner. See similar questions...

Yes, one person (U.S. or foreign) can incorporate a Corporation in Delaware. One person (U.S. or foreign) can also form an LLC in Delaware. Go Back to the Top of the Page See similar questions...

A corporation is a general-purpose entity in which management is exercised by a board of directors elected by shareholders. "Ownership" in a corporation is reflected in the shares held by the individual shareholder. A limited liability company has members (similar to a partnership) who may directly manage the company or who may vest management in one or more managers. It combines features of a partnership and a corporation. See similar questions...

Yes, a foreign person or Corporation can form and be the owner of a Delaware Corporation or LLC. Go Back to the Top of the Page See similar questions...

The stockholders of a Delaware Corporation and the owners of units in a Delaware LLC are not personally liable to the creditors of a Delaware Corporation or LLC unless they personally guarantee the obligations. Go Back to the Top of the Page See similar questions...

Yes, Delaware Corporations and LLCs can qualify to do business in all 50 states and in foreign countries. Go Back to the Top of the Page See similar questions...

A corporation or LLC is a legal entity that has a separate existence from the individual(s) who forms it initially and its owners and operators. It is created by filing Articles with the appropriate state officials. It can contract, do business, sue and be sued, and enjoy most of the privileges of a separate entity. See similar questions...

LLC" and "Corporation" have many of the same characteristics. The most important characteristic they share is that they both offer limited liability protection to its owners. Typically, shareholders are not liable for the debts and obligations of the corporation; thus, creditors will not come knocking at the door of a shareholder to pay debts of the corporation. In a partnership or sole proprietorship the owner's personal assets may be used to pay debts of the business. See similar questions...

An LLC provides the same protection from liability as a corporation but without the more complex recordkeeping tax structure required of corporations. See similar questions...

Yes. Name reservations are now “generic” and can be used to form any type of filing entity. See similar questions...

S corporations are companies (typically with 75 or fewer shareholders) allowed by the Internal Revenue Service (IRS) to have the benefits of incorporation, but function as if they were partnerships. An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation. An S corporation generally is exempt from federal income tax. See similar questions...

Not only is Nevada an easy state in which to incorporate or form LLCs, but also the annual cost is low (the Nevada Corporation annual fee is $85; the Nevada LLC annual fee is $85, regardless of capitalization). Go Back to the Top of the Page See similar questions...

Florida is a good state to incorporate or form an LLC in because it is both easy and low-cost (the Florida Corporation annual fee is $150 and the Florida LLC annual fee is $50, regardless of capitalization - one of the lowest in the U.S.) Go Back to the Top of the Page See similar questions...

You cannot convert a corporation to an LLC. You will need to first dissolve your corporation, and then you can form a new LLC using the same name. See similar questions...

LLC is NOT a corporation. The acronym "LLC" means Limited Liability Company not limited liability corporation. The document (articles) filed with the Secretary of State to form a corporation and an LLC are NOT the same. All officers, and members of boards of directors, of private corporations, while rendering actual service for the corporations for pay, must be covered. However, there is a major exception. See similar questions...

LLC is an unincorporated association that offers a combination of limited liability and special tax treatment. Limited Liability Companies (LLCs) were introduced in the late 80’s and early 90’s and do not have the long, established history of corporations. LLCs were originally limited to two or more persons and with a limited life. Most jurisdictions have eliminated those limitations. See similar questions...