When incorporating, you have several business entities to choose from. There is the C Corp, S Corp, and LLC (limited liability company). I will not discuss the DBA (doing business as) as an option because this form of entity provides NO legal protection or shelter whatsoever and the owner is personally liable for everything.
The LLC:
The LLC provides “pass-through” taxation to the owner’s (member’s) personal income tax returns. This is the newest form of corporation that was established about 20 years ago and is available in all 50 states. The LLC is simplified and is based upon an “Operating Agreement” that is the foundation of how all business decisions are made. This is the form of business entity I use for my single location pizzeria that I own and operate in Holland, Michigan.
PROS: Provides the liability protection of a corporation without the corporate formalities (Board meetings, Shareholder meetings, minutes, etc.) and extra levels of management (Shareholders, Directors, Officers). Taxed the same as a sole proprietorship (1 Member LLC) or partnership (2 or more Members).
CONS: Usually more expensive to form than a DBA, requires more paperwork and formal behavior.
[tags]incorporate, c corp, s corp, llc, dba, business, owner, shareholder, liability, entity, limited liability, sole proprietor, partnership[/tags]
What is your recommendation on annual meetings and contents of the minutes for an LLC?