Limited Liability Company (LLC)
A Limited Liability Company (LLC) is a business structure that provides limited liability protection and pass-through taxation. Like corporations, an LLC exists as a separate legal entity from its owner(s). This means that owners are not personally liable for the business's debts and liabilities.
Why choose an LLC
A Limited Liability Company (LLC) is a business structure that provides limited liability protection and pass-through taxation. Like corporations, an LLC exists as a separate legal entity from its owner(s). This means that owners are not personally liable for the business's debts and liabilities.
Ready for your LLC?
The state in which you form your company can provide certain benefits.
Form an LLC today for as little as $99.
Includes 3 months FREE Registered Agent Service
S Corporation
The S corporation business entity type is a corporation that comes with an advantage, it has the limited liability of a corporation, but without the "double taxation" of income passed through to the shareholders. The "S corporation advantage" allows a business owner to use the business losses — such as those incurred during the startup phase — on their personal returns as deductions. S corporations can also provide savings for their owners on self-employment or Social Security/Medicare taxes along with the FICA (Federal Insurance Contributions Act) tax.
Why choose an S corporation?
An S corporation allows the owners to offset non-business income with losses from the business, unlike a C corporation which the IRS views as a separate tax entity. When compared to an LLC, the S corporation enables an owner to characterize a portion of income as “dividends,” rather than “earnings” that are subject to employment taxes.
Ready for Your S Corp?
Choose the state where you'll form your business.
Start your S Corp in minutes.
Includes 3 months FREE Registered Agent Service
C Corporation
C corporations are the most common type of corporation. Incorporating as this entity type provides a business with more flexibility than an S corporation structure in terms of the number of owners (shareholders) C corporations can have and who can be an owner. Because of a pronounced ability to deduct employee benefits, C corporations are often preferred by developing businesses.
Why choose a C corporation?
C corporation owners can hold different types of stock interests (such as preferred versus common stock.) This is one reason why venture capitalists choose C corporations when they offer funding. Investors are drawn with the prospect of dividends if the corporation makes a profit. A C corporation can also retain and accumulate earnings (within reasonable limits) from year to year.
Ready for Your C Corp?
Choose the state where you'll form your business.
Start your C Corp in minutes.
Includes 3 months FREE Registered Agent Services
Non-Profit
A non-profit corporation is a business that is formed for purposes other than making a profit. Non-profit organizations come in many forms. Examples include churches, food pantries, and most hospitals. Forming a non-profit corporation helps you avoid personal liability for the debts of the organization. The principal advantage to non-profit status for an organization is that it will be qualified to receive both private and public grants.
Why form a non-profit?
While incorporating your not-for-profit venture is not a requirement, it lends more credibility to your organization. Also, to become tax-exempt, you must incorporate and also file Form 1023 with the Internal Revenue Service. A few states require a separate file for state tax-exempt status as well.
Learn more about the advantages of forming a non-profit corporation.
Ready for Your Nonprofit?
Choose the state where you'll form your business.
Start your Nonprofit today.
Includes 3 months FREE Registered Agent Service
Additional business types
Limited Partnership (LP)
A limited partnership offers certain advantages over a general partnership, including limited liability protection for some of the partners and pass-through taxation.
Learn more about LPs.
Limited Liability Partnership (LLP
A limited liability partnership is a common business structure for certain professional services, such as doctors, dentists, attorneys, and architects.
Form an LLP
Professional Corporation or PLLC
Professional services (such as doctors, lawyers, architects, and engineers) may have the option in some states to form a professional corporation or a professional limited liability company.
Learn more about PCs and PLLCs.
Doing Business As (DBA)
A doing business as (DBA) name is also known as an assumed name, trade name, or fictitious business name. While a DBA is not a type of business structure, filing a DBA allows you to conduct business under a name other than the personal name of the owner or owners (in the case of a sole proprietorship or general partnership) or the name other than the official entity name included in an entity filing with the state (such as with an LLC, corporation, or other statutory entity).
Learn more about filing a DBA.
FAQs
What does it mean to be incorporated?
Incorporating a business means turning your sole proprietorship or general partnership into a company formally recognized by your state of incorporation. When a company is incorporated, it becomes its own legal business structure set apart from the individuals who founded the business. Through incorporation, the company's owner or owners create a separate legal entity to transact business. This new business entity corporation or limited liability company (LLC) transforms the way the business is seen through the eyes of the law and often has more credibility with potential customers, vendors and employees.
Note: Technically, being “incorporated” refers to creating a corporation, such as a C Corp, S Corp, or non-profit corporation. However, this term is broadly used to refer to any business that is formed through a state filing, including LLCs.
How does incorporation work?
Wondering how to incorporate your business as a C corporation or S corporation or how to form an LLC? Here are some of the steps included in the process:
- Determine the state where you want to incorporate.
- Decide which business type is best for your business and goals. (You may want to consult with an attorney or accountant.)
- Determine who the directors of the corporation or who the members/managers of the LLC will be.
- Select a registered agent. Your registered agent must be listed on your formation documents. (Articles of Incorporation for a corporation or Articles of Organization for an LLC.) The registered agent is appointed by you to receive important legal and tax documents on behalf of your business and forward them to you. BizFilings includes this service in all incorporation packages.
- Determine which business licenses are required for your business. If you plan to hire employees, you may need a payroll tax registration, and if you are selling goods, your business may also require a sales tax registration.
- Prepare and file the Articles of Incorporation or Articles of Organization per the instructions from the Secretary of State's office. BizFilings handles this step for you, allowing you to concentrate on running your business.
What are the benefits of incorporating a business?
The primary benefit to business incorporation is limited liability. When you own a small business, you will invest a lot of money into not only getting it launched, but in keeping it running smoothly as well. As the owner, you are responsible for any debts and losses your business may accumulate along the way. However, when you incorporate, you are typically only held responsible for the amount of money you personally invest. Your personal assets typically cannot be used to satisfy the debts and liabilities of your business.
View our Benefits of incorporation or Benefits of forming an LLC articles to learn more about limited liability protection and other benefits of incorporating a business.
For a comparison between multiple incorporation types view our article Which Business Type is Right for Me? C Corp, S Corp, or LLC to help with your decision.
Business Type Comparison Chart
What are the differences between business types? Use our Comparison Chart.
Incorporation Timeframe
The speed at which your documents arrive depends on the state, as well as package chosen. If your filing is time sensitive, please contact us.
Don’t Forget a Registered Agent
The RA receives important legal and tax documents and helps your business stay compliant with state requirements.