Frequently Asked Questions

By having an entity, you take assets out of your personal name. In a society where lawsuits are common, an entity can create protection and open the door to tax advantages otherwise not available.

There are vast differences between the two, but one of the biggest differences is flexibility. An LLC has relaxed requirements as to things like board meetings and minutes. Also, an LLC can file taxes as a sole proprietor, a partnership, an S Corp, or a C Corp.

An S Corp is a pass through entity which con not have a profit at year end. Profits pass to the share holders; therefore, the S Corp is not taxed. The C Corp can have a profit and could be subject to double taxation because of this. There are clear advantages and disadvantages to both. Your tax professional should advise you about which would be best for you; however, most tax professionals encourage his or her clients to begin as an S Corp.

Some companies promote particular states as the best. Each state has laws that create advantages and disadvantages depending on what you are trying to accomplish. The state filing fee can also be a factor. If you are doing business in a particular state, you may need to file in that state. These are questions that should be discussed with a professional.

A registered agent is someone whom you designate to receive official papers for your business. These would include documents related to lawsuits and important communications from the state, such as renewal notices for business registrations. Often, laws or official instructions relating to registered agents refer to their receiving “service of process”, which is a way of saying that registered agents are designated to receive papers relating to lawsuits. You need a registered agent in each state where you are registered to do business. As a rule, this means that you will need a registered agent in any state in which you’ve registered a corporation, limited liability company (LLC), limited partnership, or limited liability partnership (LLP). Your registered agent is “registered” in the sense that you submit a form to the state that “registers” who will be your business’ agent for official—including lawsuit-related—communications.

Each State has different requirements of filing the Articles of Organization. In some States this can be done within a couple of days while other States can take well over a month to complete.

Most entities need to be renewed each year. A few states renew every other year while some states don't require a renewal but charge a franchise fee and other states charge both. As you can see it is very much a state-by-state issue. At Corp Advantage, we will assist in selecting the right state for you.

There are definitely tax advantages to having an entity. There are some write offs that can be taken in an entity that simply can not be taken personally. Another advantage is that entities have a much lower rate of audit.

The owners of Corp Advantage have hands on experience from helping thousands of clients worldwide. If you want to receive personal service, talk to the same team member every time you call, avoid gimmicks and up-sales, and receive the most comprehensive entity package available at the lowest price, call Corp Advantage now!!