Corporation Formality
One of the most confusing and overlooking issue during incorporation process is how to choose the type of your business.
The various forms of organizations are established by state law. For example, a popular form of organization is the Limited Liability Company (LLC). However, for federal tax purposes, federal law has different definitions for the forms of business organizations. For example, at the federal level, an LLC is taxed as a partnership (unless they choose to be taxed as corporations).
Also, it’s very tricky to distinguish the abbreviations among many words. It’s hard, even for lawyers, to tell all the difference among L.P. (Limited Partnership), L.L.P (Limited Liability Partnership), and L.L.L.P. (Limited Liability Limited Partnership).
Eventually, a slightly difference between federal law and state law, or/and slightly difference between similar forms of organizations will cause a totally different shape of your business which you may never imagine. Moreover, may cause a huge difference on your corporation tax rate which will be a significant loss to your profits.
Our firm, with adequate experience in dealing with most types of organizations, will analyze and research on your business proposes. Afterwards, a “specially-made” incorporation strategy will be provided all for your good.