BUSINESS LEGAL STRUCTURE

Limited Liability Company- Is a legal status granted to businesses. This designation can relieve the business owners of personal responsibility for their company’s debts or liabilities and establishes the business as its own legal entity.

In the event of bankruptcy or a legal dispute with the business, the owner’s personal assets like bank accounts, homes, and cars can’t typically be viewed as assets of the company.

An LLC is owned by one or more individuals who are referred to as “members.” If you’re the sole owner, it’s a single-member LLC. More than one owner is known as a multi-member LLC.

LIMITED LIABILITY COMPANY

C CORPORATION

C Corp - Is the default structure of an incorporated business. It’s often referred to as a regular corporation. A C-corporation is a distinct legal entity from its owners, also known as “shareholders.” Due to it’s distinct legal identity, a corporation can enter into contracts and initiate legal actions.

If someone sues the corporation, it’s shareholders are liable only to the extent of their investment. Shareholders cannot be hold personally liable for anything related to the business of the corporation.

If a corporation fulfills the specified conditions, it may elect for S-corp status for favorable tax treatment. The term “C-corporation” is used to differentiate the standard corporate structure from the forms of business.

S Corp- An S corporation, for United States federal income tax, is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any income taxes.

It provides limited liability protection so that personal assets cannot be taken to satisfy business debts by creditors. S corporations also can help the owner save money on corporate taxes since it allows the owner to report the income that’s passed through the business to the owner to be taxed at the personal income tax rate.

S CORPORATION

DBA - A trade name, trading name, or business name, is a pseudonym used by companies that do not operate under their registered company name. The term for this type of alternative name is a "fictitious" business name. Registering the fictitious name with a relevant government body is often required.