Limited Liability Companies (LLCs) are the most popular entity type for small business owners. The main benefits of starting an LLC are:
The most common LLC is a member-managed LLC, with an EIN number, left in its default tax status as a disregarded entity.
If you are looking for an S Corporation, you can form an LLC and elect to be taxed as an S Corporation. Your CPA can make the S corp election or you can have us get your EIN number and make the S Corporation election on your behalf.
A Corporation has shareholders, a board of directions, and officers, all of which can be one person. Corporations are typically subject to more regulations and tax obligations than LLCs, but they are sometimes more attractive to investors.
If you are looking for an S Corporation, you do not necessarily need to form a corporation. You can form an LLC and elect to have the LLC taxed as an S Corporation.
A nonprofit corporation is a corporation that does not have shares and that often serves the public or the interests of a group.
Nonprofit corporations don't automatically have tax-exempt status. Only the IRS can grant that. If tax-exempt status is your goal, you'll first form a nonprofit corporation (that doesn't have shares) and later apply for tax-exempt status with the IRS.