A. There are four main benefits of choosing to form a Limited Liability Company over a regular corporation or other business model. First, LLCs liability protection so the trouble that your business may run into does not become a personal crisis as well. Today, with so many small businesses failing, forming an LLC is an important safeguard to protect your property and your bank account. Secondly, LLCs create a trustworthy image and brand name for your business. Investors see the creation of an LLC as intelligent business planning and they prefer the established "LLC" title over the usual fly-by-night "business." Thirdly, people often choose LLCs because they offer additional tax choices. Lastly, there is more operational simplicity and flexibility with an LLC. There are less regulations and formalities required to maintain LLC status, which many owners like. If an LLC sounds like something you may be interested in, the Chapter Group would be happy to help you with your company formation paperwork and show you how to free up corporate capital to expand your business.

A. California corporations that choose limited liability may be run by multiple owners who are called "members." In addition, there is a "managing member" who runs the show. The LLC is not taxed itself. With a regular corporation, both the corporation and its owners are taxed separately, which is like the government taking two bites out of your earnings.

A. A limited partnership is a common business model where a group of investors join together to reap greater profits through combined effort - yet are not held liable for the risks taken by their partners. In other words, partners do not participate in the daily operations of the partnership and therefore do not share the same liability, although they can still benefit from the partnership's gained corporate capital and success.

Under a limited liability partnership, each partner is not liable for obligations or debts that another partner incurs. The limited liability partnership is viewed as a distinct legal entity from the investors, much like an LLC, but they operate under partnership rules, rather than corporation rules.

A. If you are concerned about encountering debts or lawsuits over the course of running your business, then forming a limited liability corporation company is the way to go. Whenever you are dealing with the public and numerous vendors, it's a smart bet to protect your personal assets by looking into how to form a corporation. However, there are some restrictions on who can form an LLC. Banks, trusts and insurance companies cannot form LLCs, for instance. In some states, architects, accountants, doctors and licensed health practitioners cannot form limited liability California corporations either. Most other businesses can form an LLC in any state. Ask us if you qualify!

A. Yes! Converting from a sole proprietorship or a partnership to an LLC is an easy way for business owners to protect themselves against the capricious market fluctuations. In some states, corp filing consists of a simple certificate of conversion. In other states, you may have to publish announcements in the newspaper before terminating your partnership. In all states, you will need to transfer over your federal employer identification number, state employer identification number, sales tax permit, business license, tax registration and professional licenses to the new LLC name. We can help you with all your corp filing needs, so contact us today!

A. If you look into how to form a corporation, you will see that you're afforded more liability protection from lawsuits and business debts. You will no longer have to worry about losing your home, your boat or your bank assets if the business is suffering. Other benefits may include pass-through taxation and a more favorable public perception of your business.

A. Like a regular corporation, a Limited Liability Corporation (LLC) protects the business owner's assets, should the business run into trouble. If the business gets sued, falls into poor standing with its creditors or winds up in bankruptcy court, the assets and property of its owners cannot be taken away. Unlike corporations, which require a list of formalities and requirements to maintain its standing, an LLC does not require a recording of minutes, bylaws or meetings to maintain its status.

A. S-Corporations are limited to 100 members, whereas LLCs have no limits. Also, members of an LLC do not have to be US citizens or residents.

A. You can form an LLC with one owner or multiple owners. There are no limitations.

A. No. As long as you fill out the articles of organization, you can form your own LLC, without legal fees or assistance.

A. This document, which outlines the rules governing corporations, is necessary to set up an LLC in many US states. With our help, navigating the corp filing requirements is a breeze! While not required, you may also want to create an operating agreement, which will further protect your liability should you wind up in court for any reason, in addition to outlining the rules that govern how business decisions are made. Operating agreements are important in avoiding misunderstandings among business owners who may have concerns about finances and management. If you do not make your own operating agreement, you are subject to the default rules made in your state, which are not always advantageous to your particular business.

A. Generally speaking, one of the benefits when you file corporation forms is that you report your share of company profits or claim your company losses on your individual tax returns. The LLC itself is not taxed, so you just pay one set of taxes, rather than two. For more information regarding specific tax legislation in your state, please speak with a qualified tax attorney. Then, when you are ready, we can help you with your corp filing needs!

A. Usually it's recommended that you form your limited liability corporation company in the state where you are located or where you plan to do most of your business. This type of registration awards the most tax benefits and has the lowest fees. Of course, you may take the route of many Fortune 500 companies and choose to incorporate in Delaware, where the laws are designed to help corporations avoid law suits. Some entrepreneurs also like Nevada because there are no state income taxes, no franchise taxes, no corporate income tax, small annual fees, minimal disclosure requirements and no taxation on corporate shares. A "foreign corporation" may pertain to a corporation from another country or simply a corporation from a different state than where it is registered. While there are additional fees, this is yet another option to consider. At Chapter Group, we can help you sort through these files and fees to make the most informed decision for your success.