question about incorporating, advice needed!?

Question

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??

Also, I could in theory incorporate in a state like delaware, but I am thinking that I should do it in a state where i reside or do business. Thanks in advance.

Yes I meant LLC, thanks..

Answer 1

An LLP? Did your accountant advise an LLC or Limited Liability Company? An LLC is great if you are seeking to protect your personal assets. But a corporation has tax advantages that no other form of business has access.

There are lots of places to look for info on Corporations. I would recommend a book called "Inc and be rich." One of the Authors is Diane Kennedy a CPA. There is not enough space or time to go into all that here.

As for State of Incorporation, I would say either do it in your state of business or in Delaware or Nevada. The latter two have advantages, especially in maintaining the corporate veil if you are sued. You must remember that if you are doing business in a state other than your home state you must register in each state as a foreign entity and that will cost agency fees (Someone in each state that acts as an agent for which legal proceedings can be served).

You may wish to speak with a tax attorney if you find the recommended book not helpful enough. Also, there are more paperwork and formalities involved in a Corporation and you will need to keep up with those requirements.

Good Luck.

Answer 2

If your accountant advised you to start an LLP this is available to only certain professions - e.g. accountants and lawyers. If it is for a profession which can incorporate as an LLP you cannot usually incorporate in any other manner. If you were able to incorporate as an LLC then I would recommend Delaware because it has the most lax compliance requirements in the country. I am not sure why you would be more comfortable incorporating where you reside unless there are tax ramifications to that which I do not think there are.

Answer 3

if your accountant pronounced an LLP, fire him/her on the instant. LLPs are purely allowed for professional service agencies (accounting, regulation, engineering, etc.) maximum in all risk, although, you misheard your accountant; he/she in all risk mentioned LLC. the alternative between a company and an LLC is perplexing. in many cases, with an S company or an LLC, you get to pay taxes as a partnership, whilst with a C company, you would be waiting to deduct extra. basically, in case you intend to have team medical well being coverage and/or a 401-k, C company ought to be the main suitable selection, in any different case, an LLC ought to suffice. this is a few thing your accountant ought to describe to you. As to the region, comprise in the state the place you definitely stay. in case you comprise out of state, you will ought to qualify on your state, and qualification expenses are oftentimes equivalent to incorporation expenses. So incorporating out of state ability you get to pay 2 units of expenses, this is extra worry than this is incredibly worth.

Answer 4

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