With the increasingly complex number of choices you have in which to form a business, the ever increasingly complex world we live in makes the decision difficult. There are many options including corporation, LLC, LLP and LLLP among others. Understanding the taxes plays a role and they include the entity be taxed like a C-corporation, and elect S-corporation tax status. There are other decision surrounding incorporating in Nevada, or in another state and other such decisions. As you start making your choices, you should start with getting a feel for the types of entities that are available. Presuming that you are not going to do business as a Nevada sole proprietorship whether it is doing business in your name individually or under Nevada corporate law, and there are many options. Today, we at Kajioka & Associates, Attorneys at Law would like to help you choose the right business entity for you.
Limited Liability Company
In the 1990s, the LLC started to gain popularity. In addition to avoiding the double taxation problem of corporations, the benefits of limited liability for the owners is through this type of entity is designed to combine. They remain flexible enough to allow you to elect to be taxed like a partnership, S-corp, or C-corp, however. Also, there are Series LLCs.
Partnership Business Structure
To run a business, a general partnership is simply two or more people getting together. When there are investors who are not involved in the business, a limited partnership may be used. While the general partners do not, these investors are the limited partners and have limited liability.
Being around forever, corporations are well known. Having limited liability, the shareholders own the company. The day to day operations are handled by the officers where the corporation is governed by a board of directors. Unless they are treated as an S-corporation, corporations are subject to double taxation, however.
Limited Liability Limited Partnership
The LLLP, a relatively new twist on the limited partnership concept. Extended to the general partner of a properly registered LLLP is the limited liability. You could be subject to a penalty of $1,000 – $10,000 if you purport to do business as a Nevada registered LLP without filing the necessary certificate of registration with the State.
Many practice under either a Nevada professional corporation (“PC”) or professional limited liability company (“PLLC”), under Nevada corporate law, those providing professional services, like dentists, doctors, accountants, lawyers, etc. There are limits on who can own these entities.
To operate any lawful business activity, a Nevada business trust may be formed, and they are not very common. Much like the formation of other business entities, they must be registered with the Nevada Secretary of State. With the State may result in penalties like the LLLP, with the failure to file the proper certificate of trust.
Criminal Defense, Personal Injury, Business Attorneys & More in Greater Las Vegas, Nevada
If you are looking to form a business and need assistance, we at Kajioka & Associates, Attorneys at Law are readily available to assist you. Call our friendly office today to schedule your consultation.