Incorporate Online :: S Corporations, C Corps, LLC, Non-profit incorporations

S Corporations avoid the double taxation aspect of a general business corporation. S corporation are attractive because all earnings or losses are passed directly through to your personal income tax return.

Incorporate Online as a LLC, S Corporation or a Non-profit. Protect yourself financially and gain tax advantages

One of the largest incorporating service companies (forming LLCs, S-Corporations, Non-profits, etc).

As one of the largest incorporating service companies (forming LLCs, S-Corporations, Non-profit Corporations, et al) in the United States, American Incorporators provides a comprehensive range of services to companies, entrepreneurs, freelancers, home based businesses, and individuals wishing to incorporate in any of the 50 states.

Headquartered in corporate-friendly Wilmington, Delaware, American Incorporators has been providing efficient and cost-effective incorporating services for over 20 years. American Incorporators is a member of the Delaware Better Business Bureau and Delaware State Chamber of Commerce.

Corporations and LLCs often experience a greater ease in doing business. Many stores and banks favor corporate accounts and offer discounts. Incorporate Online for as little as $99. Click here!

Types of Corporations

S Corporation
Many business owners find the S corporation attractive because all earnings or losses are passed directly through to their personal income tax return. This avoids the double taxation aspect of a general business corporation. There are, however, certain requirements that must be met to qualify for S corporation status. We recommend that you consult with your tax advisor before choosing this type of business structure. To obtain the S corporation tax status, all shareholders of the corporation must sign IRS Form 2553, and it must be filed with the IRS within 75 days of the date of incorporation. American Incorporators can assist you with this filing.

C Corporation
Although the most formal corporate structure, a general business corporation is the most widely used by both small and large businesses and offers the fewest restrictions. A general business corporation may have an unlimited number of stockholders/owners whose personal assets are generally protected in the event of a lawsuit against the corporation or if the business fails. A stockholder's liability is usually limited to the amount of investment in the business and no more.

Limited Liability Company (LLC)
Limited Liability Companies are a type of business entity. An LLC is a legal entity separate and distinct from its owners, who are called "members." The rights, duties and obligations of LLC members are governed by an "operating agreement." The provisions of the operating agreement are extremely important as they can have a direct impact on how both the LLC and its member-owners are taxed for federal income tax purposes. In addition to tax matters, the operating agreement typically deals with issues of management of the LLC by either members or non-members, transfer of interests in an LLC and termination of the LLC.

When properly structured under applicable state statutes, LLC members have the same limited liability protection which is afforded stockholders in "C" or "S" corporations. This means that, absent any specific personal guarantees, the amount at risk for members of an LLC is limited to their investment in the LLC. Thus, the personal assets of members are generally beyond the reach of the creditors of the business. This liability protection is enjoyed by all members, unlike a limited partnership where at least one general partner must remain liable for partnership debts. And, unlike limited partners, LLC members may be active in the management of the LLC without risking their limited liability status.

LLC members may also enjoy the same flow-through tax benefits which are applicable to partners of a partnership.

An S Corporation also provides limited liability protection to its investors as well as flow-through tax treatment. Nevertheless, there are distinct differences. To begin, there is more flexibility in an LLC then in an S Corporation. For example, members of an LLC may include any number of individuals, partnerships, corporations, trusts, nonresident aliens, etc. This is not the case with S Corporations which require that only individuals and certain trusts and estates own stock and which limit the number of shareholders to no more than 75. Moreover, S Corporations have "one class of stock" restrictions. In addition, all distributions and allocations must be the same for each share. Should an S Corporation violate any of these rules, it causes the S election to be revoked. LLCs may (and typically do) base distributions and allocations on the basis of member contributions, rather than on a per capita basis.

Non-Profit Corporation
A non-profit corporation is designed for businesses engaged in charitable, religious, educational or scientific activities that benefit society in general. The net income of non-profit corporations must be used to further the not-for-profit goals of the corporation, not to enrich individual officers, members or directors. Most non-profit corporations have either tax-exempt or 501(c)(3) status, which exempts them from paying taxes on their income. To get either of these tax designations, an Application for Recognition must be filed by the client (or his attorney) with the IRS and be approved. We will prepare the paperwork for non-profit corporations for only the states of Delaware and New York.

For information and costs to set-up a Non-Profit Corporation in those states click below.

Incorporate Online for only $25 plus state fees. Click here!