| A corporation is a
separate and distinct entity separate from its
owners shareholders. Thus, a shareholders
assets are not at stake if the corporation is
sued for civil or financial liability.
Probably
a C corporation is best though with an S
corporation you can avoid double taxation (once
to the shareholders and again to the
corporation) by electing to be treated as an S
corporation. However, the double taxation
concern comes in only if you are making a lot of
income.
Generally, an S
corporation is exempt from federal income tax
other than tax on certain capital gains and
passive income. On their tax returns, the
S corporation's shareholders include their share
of the corporation's separately stated items of
income, deduction, loss, and credit.
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|
Limited
Liability Company s similar to a
corporation, owners have limited
personal liability for the debts
and actions of the Limited
Liability Company. Other
features of Limited Liability
Company s are more like a
partnership, providing
management flexibility and the
benefit of pass-through to
owners taxation. |
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Tax Id Number Information