Corporations and limited liability companies (LLCs) are preferred business structures because, unlike sole proprietorships and partnerships, both offer liability protection. This means that the owner of a company cannot be held personally responsible for the company’s debts. The personal assets of an owner are shielded from company liabilities (unless the owner signs a personal guarantee when they are acquiring financing for the company).
If operational ease and flexibility are important to you, an LLC is a good choice.
If you are looking to save on employment tax and your situation warrants it, an S corp could work for you.
What is the Different Between and S Corporation and a C Corporation?
S corps and LLCs are similar in that they are both “pass-through” entities for tax purposes; the income of these companies is passed through to their owners and reported on the owners’ personal income tax returns, thereby eliminating the double taxation incurred by owners of a standard corporation, or C corporation. With a C corporation, the net business income is subject to corporate income tax, and the monies remaining after the corporate income tax are taxed a second time when they are distributed as dividends to its owners who must then pay a person income tax.
The Greene-Gretzinger Law Office provides assistance to individuals in reviewing business structures and in selecting the one that is best suited to their particular area. We are not a tax law firm and we do not provide tax services or support to businesses; however, as part of the entity selection process, one issue that must be taken into consideration is tax treatment.
We file articles of organization for your LLC and other organizing documents as needed.
We file articles of incorporation for your Wisconsin Corporations and other organizing documents as needed including by-laws.
We provide up to date operating agreements with buy-sell provisions that help you avoid unpleasant situations down the line.
We assist in buying and selling businesses and in transferring units of your LLC via gift or sale.
We provide business support including contract creation, contract review and dispute resolution.