|Small Business Information|
Incorporating a Small Business: S corporations versus C corporations
If you've been considering incorporating your small business, you've probably been confused about the difference between S and C corporations.
The similarities between S and C corporations are as follows:
1. Both S and C corporations are both separate legal entities that offer limited liability protection. If, for example, the corporation is sued only the corporation's assets are at risk. The assets of the board members or CEO are usually safe.
2. An S Corporation is essentially a C Corporation that has a special tax status with the IRS, created by filing form 2553. The articles of incorporation that are filed with the state are same.
3. Both entities must hold annual shareholder's meetings. Meeting minutes must be kept with the corporate records. Failure to follow this procedure can result in a judge's decision to 'pierce the corporate veil' and hold the corporation's owners personally liable for any penalties or debts.
So what are the differences?
1. S and C Corporations differ greatly with regards to taxation. With S corporations any income or loss generated by the business appears on the personal tax return of the owners. This is often referred to as a "pass-through" tax entity.
2. C corporations are often referred to as separately taxable entities. As you've probably already guessed, any gains or losses do not appear on the owner's personal tax records
By now you're probably thinking, "What's the use of an S corporation if my tax statements aren't kept separate?"
The reason is this: Dividends paid to the small business owners from corporate profits may be taxed twice. The IRS can tax both the corporation and the owner.
3. S and C corporations also differ with regards to ownership limitations, some of which are as follows:
a. C Corporations can have an unlimited number of shareholders while S Corporations are restricted to no more than 100 shareholders. As a small business owner this shouldn't be much of a problem.
b. S corporations cannot have shareholders that reside outside of the United States. Practically anyone can own shares of a C corporation, regardless of where they reside.
c. Also, S Corporations ownership is largely restricted to individuals. C Corporations, other S Corporations, LLCs, partnerships and many trusts cannot own shares of an S corporation. C corporations can sell shares to individual or other legal entities.
Well there you have it. Basically S corporations offer the same liability protection without the tax separation or freedom of ownership. The restrictions placed on S corporations are hardly noticed by the bulk of small businesses with only a few owners. If you're still not sure what type of corporation to form, there's a lot more information about incorporating a small business at small-business-assistance.com
Franchising 101- What You Absolutely Need to Know
Franchising has made the world look really small. The well known flavors are now not just restricted to a single town or city but can be enjoyed world wide. Otherwise it would only be a dream for somebody in Asia to wear the fashion of Europe, for the West to have delectable food of the East etc. Globally as well as domestically the system of franchising has something good for everyone.
FTC Adding to the Franchise Rule
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A Look at Small Business Incorporating in Florida
The choice to incorporate a small business in Florida has several advantages. Corporations are separate legal entities and, as such, the corporation rather than individual owners pay both the taxes and the liabilities. If you are thinking of running (or are currently running) a small business, incorporating in Florida might be a good idea because you would no longer held personally liable if your business suffered a downturn.
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Cash is the lifeblood of any business. As humans need air to breath and food to eat, your business requires customers that provides the primary substance that keeps a business in business: cash.
Do You Need the Help of a Virtual Assistant?
Running a business, whether large, small or in your home, is full of challenges. Getting the day-to-day tasks completed, e-mail, faxes and telephones answered, bills and statements sent out, reports run, schedule updated, travel arrangements made, marketing pieces and website updated, as well as a plethora of other tasks, can be downright daunting.
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Too often in business we get trapped into reviewing our sales numbers without analyzing the all important "profit" number. This is commonly referred to as the "bottom-line" of a business. There are various ways you can dramatically impact your profitability.
How to Prevent Home Business Burnout
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How To Build Business Credit
Having their own business is something many millions of people dream of doing. Many do, of course, but so many others never quite get around to it. One of the factors that may discourage people from getting that business off the ground, is a lack of start up capital; and another may be the risk of losing their own money.
California Department of Corporations Attempts to PR Their Benefits to Consumers
On Monday the Department of Corporations in California revoked franchise registrations of two franchising companies. In a Press Release the Department said; "The CDC has taken enforcement actions that have resulted in the revoking of registration of two franchise businesses operating in California... also ordered to stop the offer and sale of unregistered franchises in the state." There reasoning was that the two companies in question had not completed registration or sent in paper work on time or completed the forms. What the Department of Corporations did not tell you was that they are known in the franchising industry as being the most inept of all franchise registration states. The American Bar Associations franchise forum has had many a franchise attorney admonish the Department of Corporations. I can personally say we had our registration application in limbo for 10-months due to the Department of Corporations ridiculous bureaucracy. (I run the company; http://www..CarWashGuys.com ).
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Mobile Pressure Washing and City Contracts
Many mobile pressure-washing companies turn to government contacts to make money. It is very easy to acquire such municipal contracts for cleaning, as the government needs some cleaning up. The cities generally have a fiscal year starting in June, so you want to check on the available contracts around the end of March to see what is coming up, which departments will have budget monies available and also go and visit the local department heads to see what is needed. Believe me even local cities waste money and you may as well get some. If this bothers you, then make the money and donate some to a candidate who promises to trim some of the fat next year.
Packing Material Thats Cheap!
Shipping materials can be expensive! Even the styrofoam "peanuts" can cost a great deal. Here's a great idea for packing paterial that is bio-digradable, easy, and best of all...CHEAP!
Shocking Experienced Copywriter Reveals Little-known Secrets To Closing BIG Ticket Deals!
Franchisee; Vacation Managing
Do you own a franchised business? Over 400,000 franchised businesses currently operate in the United States, which is a true testament of free enterprise. There are many advantages of franchised businesses, which anyone who owns a small business has thought about. One thing they probably have not considered; whether they are franchisee or not is that in a franchise system; your local franchise runs as store exactly like yours. They are aware of every single aspect of your business. So it makes sense that if you want to go on vacation you should have the closest franchisee watch your store for you and you can return that favor for them later.
Home Based Franchise; What About Future Expansion?
As a franchisor I am always asked by new and existing franchisees about future expansion. I find this to be a most wonderful question because I admire the strength of today's entrepreneur. With all and over regulation we still see hard chargers willing to battle the Tsunami of laws, rules and regulations as the debris rushes ashore. Indeed, with the Hurricane of lawyers presently in practice and Earthquake stampeding new attorneys getting out of law school, it is amazing the new warriors of free enterprise still press. Yes, in fact the modern entrepreneur has more floating and flying debris then ever before in our nations history. The of course want to shoot all the lawyers and regulators who have never made an honest dollar in their entire lives, yet no one has that much ammo and it is time consuming to run down all the much mold and slime.
Employee Email and Internet Use - A Small Business Guide
How to Find Success in the Import Export Business
Take advantage of world politics today and start your own import export business. Are you organized, efficient, and ready to make your future in an opportunity all your own? Import Export Business Opportunities are expanding and there is room for you!
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