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Limited Liability Company (LLC)

LLCs provide limited liability protection to their owners and pass-through taxation.

Advantages of an LLC

  • Limited liability protection. Owners are not held personally responsible for business debts and liabilities.
  • Pass-through taxation. Typically LLCs do not pay taxes at the business level. Income/loss is reported on the owners’ personal tax returns and any tax due is paid at the individual level.
  • No ownership restrictions. LLC ownership is not limited to “100” owners the way an S corporation is. LLCs typically have no or very few ownership restrictions imposed.
  • Flexible management. Owners have flexibility in structuring company management.
  • Fewer ongoing formalities. LLCs have less annual paperwork than, and do not face the meeting requirements imposed on C corporations and S corporations.
Learn more about LLCs

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S Corporation (S Corp)

S corporations offer the same advantages of standard corporations without double taxation, because they have elected a special tax status with the IRS.

Advantages of an S Corp

  • Limited liability protection. Owners are not typically responsible for business debts and liabilities.
  • Easy transfer of ownership. Ownership is easily transferable through the sale of stock.
  • Unlimited life. When a corporation’s owner incurs a disabling illness or dies, the corporation does not cease to exist.
  • Pass-through taxation in the corporate form. S corporation tax status avoids the “double-taxation” associated with C Corps and instead provides S corp owners with pass-through taxation benefits.
  • Raise capital more easily. Additional capital can be raised by selling shares of stock.
  • Credibility. Corporations may be perceived as a more professional/legitimate entity than a sole proprietorship or general partnership.
  • Pro-rata distribution of profits. Under IRS S corp taxation rules, profits, losses and other pass through items are allocated based on each shareholder’s proportionate shares of stock.
Learn more about S Corporations

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C Corporation (C Corp)

C corporations provide limited liability protection to owners, who are typically not personally responsible for business debts and liabilities. C corporations may also offer greater tax advantages because of an expanded ability to deduct employee benefits.

Advantages of a C Corp

  • Limited liability protection. Owners are not typically responsible for business debts and liabilities.
  • Unlimited owners. C corporations can have an unlimited number of shareholders.
  • Easy transfer of ownership. Ownership is easily transferable through the sale of stock.
  • Unlimited life. When a corporation’s owner incurs a disabling illness or dies, the corporation does not cease to exist.
  • Owners are not automatically taxed on business earnings. Earnings of a C Corporation are not automatically taxed to the owners. They are taxed to owners if distributed as dividends. The C Corp pays tax on its income at C Corp tax rates.
  • Raise capital more easily. Additional capital can be raised by selling shares of stock.
  • Retained earnings inside the business. A C Corp could successfully retain earnings for reasonable business needs, if it complies with the accumulated earnings tax provisions, instead of distributing them to shareholders.
Learn more about C Corporations

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What is a nonprofit corporation?

A nonprofit is a company or organization formed for purposes other than making a profit. Like standard for-profit corporations, nonprofits provide limited liability protection.

Advantages of a nonprofit

  • Limited liability protection. Directors and officers are typically not personally responsible for the nonprofit’s debts and liabilities.
  • Tax-exempt status. Nonprofits can apply for both federal and state tax-exempt status.
  • Access to grants. Some nonprofits are eligible to receive public and private grants, making it easier to get operating capital.
  • Tax-deductible donations. With 501(c)(3) nonprofits, donations made by individuals to the nonprofit corporation are tax-deductible.
Learn more about nonprofits

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Starting a Business Basics

Whether you're buying a franchise, creating a start-up, purchasing an existing operation or turning a hobby into a home-based entity – starting a business of any kind involves a great deal of planning and preparation.  In addition to helping you incorporate or form an LLC, as well as providing information about how to start a business in each particular state, BizFilings offers additional products and services useful to entrepreneurs when starting a business. Featured services include:

Registered Agent Service $149/year

Required by state law, the Registered Agent receives important legal and tax documents and helps your business stay compliant with state requirements.

Doing Business As (DBA) Starts at $110 + state/county fees

Operate your business under a new or additional name.

Business License Application Package Starts at $99

Receive the necessary license and permit applications you need to operate and start a business in a particular city, county and state.

How It Works

With BizFilings, you are just 5 steps away from online incorporation.

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