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Welcome to Financial Playaz! We provide a full suite of services for your business formation needs, including preparation and filing of the Articles of Organization, unlimited name searches, free registered agent service for the first year, EIN business tax number, IRS form 2553, operating agreement, banking resolution, lifetime company alerts, online access dashboard, unlimited phone and email support, business banking account and business tax consultation. Let us help you start and manage your business!
Alimited liability company balances the relative ease and flexibility of a partnership structure with the increased risk protection and tax advantages of a corporate structure. LLC owners (known as “members”) aren’t personally liable for business obligations. By default, members pay taxes in the same way as would owners of a sole proprietorship or general partnership. But an LLC can also elect to be taxed as a C-corporation or an S-corporation if it meets certain requirements. Many small business owners choose LLCs for the simplicity and flexibility this structure offers.
In order to establish an LLC, instead of filing Articles of Incorporation like a corporation, LLC founders must file Articles of Organization with whatever state agency manages business registration. Like a corporation, an LLC must list a registered agent.
A C-corp is the most common type of corporation—essentially the default variety. Named for the subchapter of the Internal Revenue Code—subchapter “C”—under which its tax designation is described, tax reasons are what make a C-corp a C-corp. (S-corps and C-corps are no different under state corporation laws—only by way of the federal tax code.) With a C-corp designation, a corporate income tax is paid first by the corporation with a federal tax return (Form 1120) as required by the IRS. Shareholders must then pay taxes on personal income at the individual level for any gains realized from dividends.
C-corps have no major restrictions on who can own shares, meaning other businesses and entities both in and outside the United States can have ownership. There is also no limit to the total number of shareholders. C-corps, like all corporations, must follow operating rules called “corporate formalities” in order to maintain corporate protections.
Like a C-corp, an S-corp is composed of shareholders, directors and officers and follows the corporate regulations in order to enjoy the same protections from personal liability. An S-corp is distinct in that it avoids the double taxation situation faced by a C-corp. S-corps are considered “pass-through tax entities,” meaning income can go directly to shareholders without first facing a corporate income tax.
In essence, an S-corp combines the tax privileges of a partnership with the corporate protections of a C-corp. In exchange for these benefits, however, S-corps are subject to a number of regulations, including a maximum limit of 100 shareholders and strict rules about what types of entities can become shareholders.
A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public benefit. Donations made to a nonprofit organization are typically tax-deductible to individuals and businesses that make them, and the nonprofit itself pays no tax on the received donations or on any other money earned through fundraising activities. Nonprofit organizations are sometimes called NPOs or 501(c)(3) organizations based on the section of the tax code that permits them to operate.
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