North Dakota Demand that Suit be Commenced and Filed - Corporation

You'll need your LLC's name, the name and address of its registered agent, and other basic information, like how it will be managed or the names of the LLC owners. You'll have to pay a filing fee when you submit the articles. In most states, the fees are modest - typically around $100.

Because distributions are taxed at both the corporate and the shareholder level, C corporations and their shareholders often end up paying more in taxes than S corporations or LLCs.

Forming an LLC or a corporation will allow you to take advantage of limited personal liability for business obligations. LLCs are favored by small, owner-managed businesses that want flexibility without a lot of corporate formality. Corporations are a good choice for a business that plans to seek outside investment.

Corporations offer more flexibility when it comes to their excess profits. Whereas all income in an LLC flows through to the members, an S corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.

Both types of entities have the significant legal advantage of helping to protect assets from creditors and providing an extra layer of protection against legal liability. In general, the creation and management of an LLC are much easier and more flexible than that of a corporation.

The advantages of incorporating a small business include: No.In a properly structured and managed corporation or LLC, owners should have limited liability for business debts and obligations. Corporations generally have more corporate formalities than an LLC that must be observed to obtain personal asset protection.

Businesses that have or expect to have employees should incorporate before hiring them.If you run your business as a sole proprietorship, you as an individual are liable and your personal assets are at risk. However, if you have incorporated, the corporation or LLC is the employer and takes on this liability risk.

Profits subject to social security and medicare taxes. In some circumstances, owners of an LLC may end up paying more taxes than owners of a corporation. Salaries and profits of an LLC are subject to self-employment taxes, currently equal to a combined 15.3%.

In an LLC, individuals with an ownership share are called members. In a corporation, they are called shareholders. One of the advantages an LLC has over a corporation is that in many states, a creditor cannot collect a member's dividends, whereas in a corporation dividends can be collected from shareholders.