What is the difference between a LLC, Partnership, Corporation, and Incorporated?

Question

I would like to start my own business, and am not real clear on the difference between these types of companies.

Answer 1

It all has to do with how they are taxed.....the LLC is taxed at a higher corporate tax rate....while the partnership and s-corporation are taxed at the lower personal rate. Also, with the S-corporation and partnership, the owner is able to pass through businesse losses thru his personal filing so he pays less in taxes...not the case for a c-corporation which is taxed seperate from the owner (kind of like an LLC but at a lower rate).....

Answer 2

In a sole proprietorship there is one proprietor and that they not in undemanding terms possibility the corporate' sources in addition they possibility their own sources because of the fact they are in effect one and the comparable. In a partnership you have the comparable element possibility sensible as a sole proprietorship with the only distinction being that there is extra desirable than one proprietor. In an LLC, the landlord of the corporate in undemanding terms hazards the corporate sources and their own sources exterior the corporate at the instant are not at risk. consequently the corporate may well be perspectives as cut loose the vendors who only cope with the corporate. In a employer the corporate is punctiliously cut loose the vendors who in undemanding terms possibility what they have invested interior the corporate. the main worry-unfastened form at the instant for human beings to undertake is llc because of the flexibility for tax purposes and the risk-free practices afforded to the vendors own sources.

Answer 3

I own a single person LLC. My taxes are pass through meaning that all of my business transactions (profits/expenses) I get to add as earned income and deductions on my personal taxes. I do not file taxes for my business, only myself. It works the same as a sole proprietorship except in the case of a lawsuit my personal assets aren't at risk.

For me it took about 15 minutes to fill out the form on my state's governments website and 2 days to get approved. The cost for me was $115.