LLC or corporation? : how to choose the right form for your business

The only book devoted to the most important business decision you'll make. Your company has grown-- now it's time to upgrade your legal structure to something that will protect you and your assets, as well as provide other benefits. In other words, your business is ready to become either a corporation or a limited liability company. The question is, ''Which one?'' The answer isn't always clear -- but because your choice will affect the legal and tax status of your business, it's the most important question you'll answer. LLC or Corporation? will help you make the right choice with plain-English explanations of: the basics of business entities how each business entity protects you from personal liability profits, losses and tax treatment converting from one type of business entity to another what to do if you conduct business out of state Making the right choice will affect your bottom line in many ways -- from what you pay for taxes, to your ability to seek money from investors. The book also provides conversion and formation scenarios that provide a real-world look at all the options available to you. The 2nd edition is completely updated with the latest laws regarding business structures and taxes. Table of Contents......Page 9 Part I......Page 13 1. Business Entity Basics......Page 15 Why Your Choice of Entity Matters......Page 18 Sole Proprietorships......Page 19 General Partnerships......Page 22 Limited Liability Companies (LLCs)......Page 26 Corporations......Page 30 ...And the Runners-Up: Limited Partnerships, S Corporations, and RLLPs......Page 37 2. Personal Liability Concerns......Page 51 How Your Choice of Business Entity Affects Personal Liability......Page 52 Using Insurance to Limit Liability......Page 58 3. Forming and Running Your Business......Page 65 Forming and Running a Sole Proprietorship......Page 66 Forming and Running a Partnership......Page 69 Forming and Running a Limited Liability Company......Page 73 Forming and Running a Corporation......Page 80 Resources for Forming an LLC or Corporation......Page 84 4. Money Issues: Taxes, Profits, Losses, and Investments......Page 89 Taxes......Page 90 Paying Out Profits......Page 101 Startup Losses......Page 107 Institutional and Venture Capital......Page 108 Planning for a Public Offering......Page 110 5. Doing Business Out of State......Page 113 Doing Business Out of State......Page 115 Qualifying to Do Business......Page 118 Paying and Collecting Taxes in Other States......Page 129 Lawsuits in Other States......Page 135 Internet Issues......Page 148 Part II......Page 157 6. Converting a Sole Proprietorship to Another Entity......Page 159 Converting a Sole Proprietorship to a Partnership......Page 160 Converting a Sole Proprietorship to an LLC......Page 167 Converting a Sole Proprietorship to a Corporation......Page 172 7. Converting a Partnership to Another Entity......Page 181 Converting a Partnership to a Sole Proprietorship......Page 182 Converting a Partnership to an LLC......Page 185 Converting a Partnership to a Corporation......Page 197 8. Converting an LLC to Another Entity......Page 209 Converting an LLC to a Corporation......Page 210 Converting an LLC to a Sole Proprietorship......Page 216 Converting an LLC to a Partnership......Page 221 9. Converting, Dissolving, and Selling a Corporation......Page 227 Converting a C Corporation to an S Corporation......Page 228 Liquidating and Dissolving a Corporation......Page 235 Selling a Corporation......Page 238 10. Business Choice and Conversion Scenarios......Page 245 Fast Food Fusion: A Startup Business Chooses a Business Form......Page 246 Bill and Barbara Seek Investment From a Relative......Page 248 Soaring Duck Designs Seeks Lower Taxes and a Structured Hierarchy......Page 250 Silikonics Creates an Entity to Attract Outside Investors......Page 251 The Surf Side: From Lunch Counter to LLC to Corporate Franchise......Page 253 Appendix: State Website Information......Page 257 Index......Page 269 Related Products......Page 281 "Your company has grown -- now it's time to upgrade your legal structure to something that will protect you and your assets, as well as provide other benefits. In other words, your business is ready to become either a corporation or a limited liability company. The question is, "Which one?" The answer isn't always clear -- but because your choice will affect the legal and tax status of your business, it's the most important question you'll need to answer. LLC or Corporation? will help you make the right choice with plain-English explanations of: the basics of business entities how each business entity protects you from personal liability profits, losses and tax treatment converting from one type of business entity to another what to do if you conduct business out of state Making the right choice will affect your bottom line in many ways -- from what you pay in taxes to your ability to seek money from investors. In LLC or Corporation?, you'll find real-world conversion and formation scenarios that help to display all the options available to you. This edition has been thoroughly and usefully updated with the latest resources for business owners and contains completely updated information regarding the tax status of small business entities."--Publisher's website The only book devoted to the most important business decision you'll make. Your company has grown -- now it's time to upgrade your legal structure to something that will protect you and your assets, as well as provide other benefits. In other words, your business is ready to become either a corporation or a limited liability company. The question is, "Which one?" The answer isn't always clear -- but because your choice will affect the legal and tax status of your business, it's the most important question you'll answer. LLC or Corporation? will help you make the right choice with plain-English explanations of the basics of business entities, how each business entity protects you from personal liability, profits, losses and tax treatment, converting from one type of business entity to another and what to do if you conduct business out of state. Making the right choice will affect your bottom line in many ways -- from what you pay for taxes, to your ability to seek money from investors. The book also provides conversion and formation scenarios that provide a real-world look at all the options available to you. The 2nd edition is completely updated with the latest laws regarding business structures and taxes. "Whether you are starting a new business or thinking about an existing one, the big question is "Which legal structure is best?" The answer has important legal and tax consequences,"--page [4] of cover.