I am looking to incorporate a small business corporation. My accountant advised a LLP, but I am not sure if a corp. would be more prudent. Also I am vaccilating between incorporating in NJ, MD, or VA. Anyone know any major advantages to doing it one way over another?? Thanks in advance.
2006-07-24 09:36:05 · 4 answers · asked by D. V 2 in Business & Finance ➔ Small Business
Yes, I meant LLC, thanks.
2006-07-24 17:45:06 · update #1
Also, I forgot to mention that, I am starting an internet service company. So I will probably have customers all over
2006-07-25 06:57:08 · update #2
I posted some sites that could assist you further. I think your best bet is to research all the different entities & make the decision that's best for your business.
Hope that helps!
2006-07-24 10:05:51 · answer #1 · answered by TM Express™ 7 · 0⤊ 0⤋
If your accountant suggested an LLP, fire him/her immediately. LLPs are only allowed for professional service companies (accounting, law, engineering, etc.)
Most likely, though, you misheard your accountant; he/she probably said LLC. The choice between a corporation and an LLC is difficult. Generally, with an S corporation or an LLC, you get to pay taxes as a partnership, while with a C corporation, you may be able to deduct more. Basically, if you plan to have group health insurance and/or a pension plan, C corporation may be the best choice, otherwise, an LLC should suffice. This is something your accountant should explain to you.
As to the location, incorporate in the state where you actually live. If you incorporate out of state, you will have to qualify in your state, and qualification fees are usually equal to incorporation fees. So incorporating out of state means you get to pay two sets of fees, which is more trouble than it's worth.
2006-07-24 11:01:05 · answer #2 · answered by NC 7 · 0⤊ 0⤋
if your accountant counseled you to commence an LLP this is attainable to purely particular professions - e.g. accountants and legal professionals. no count if this is for a occupation that may comprise as an LLP you won't be able to oftentimes comprise in the different way. in case you have been waiting to comprise as an LLC then i could advise Delaware with the aid of fact it has the main lax compliance standards in the rustic. i'm uncertain why you would be extra well-off incorporating the place you reside except there are tax ramifications to that which i do no longer think of there are.
2016-10-08 06:50:55 · answer #3 · answered by blumenkrantz 4 · 0⤊ 0⤋
do a sub chapter S corp. file in either Deleware or Nevada.
2006-07-24 09:41:56 · answer #4 · answered by golferwhoworks 7 · 0⤊ 0⤋