There is no right answer to this choice as it depends on the facts and circumstances of a particular business.  In most “small” business situations, the LLC is the more popular entity because it is easier to maintain, qualifies for a single layer of tax automatically (without any required elections) and is extremely flexible when it comes to accommodating any specific owner, investor, manager or operational need of a business.

On the other hand, corporations have been around a lot longer and are necessary if there is any intention of going public.  Or it you intend on taking in any professional investors (like venture capital), the investors will likely demand a corporate legal entity.

Visit the major incorporation services sites we review as they all have some good information on the corporation v. LLC choice.

When you go to the site, it is not obvious where the S corporation is handled.  Many potential customers end up leaving because of this.  But, LegalZoom does indeed handle the creation of S corporations and have formed thousands of them.

S CORPORATION BACKGROUND

It is important to understand that legal entities such as a corporation are formed at the state level.  Also, the S corporation is really the same legal entity as the C corporation at the state level.  Both are the same legal entity- the corporation.

The distinguishing  category of C or S is a federal income tax concept.  So, first understand that both start off as a corporation.  A corporation once formed under state law is taxed as a C corporation by default.

But, the owners of the business can elect to have a C corporation elect to be an S corporation under the Internal Revenue Code.

This election is done by first ensuring that the corporation and its shareholders meet the S corporation rules and then by filling out and timely filing an S election form with the IRS after the corporation is formed.

LEGAL ZOOM S CORP REVIEW AND SERVICE OPTIONS

LegalZoom offers two levels of S Corp services.  First, it has a prepare only option in which they prepare the S election form for your corporation and then provide you with instructions for how to file it.  Currently, this service is a $45 add on to the LegalZoom Economy and Standard Packages and is included in the Gold Incorporation Package.

The secon S corp service that LegalZoom offers is a full service S Corporation election obtainment service where they handle everything including the filing with the Internal Revenue Service. As of the date of this review, this service costs $80 (0r is a $35 add on to the Gold package).

If you are wondering about the reliability of the service, there is no need to worry.  Believe it or not, the obtaining of an S election is very common among small business corporations.  And small business owners are LegalZoom’s largest customer base.

So, you can rest assured that LegalZoom has perfected the process for efficiently and properly obtaining an S corp status for its corporations.  It is very important that you entrust this requirement to a reliable and proven incorporation services provider.

After all, the failure to properly or timely obtain the S status in accordance with IRS rules can later result in significant penalties and taxes.

Remember, the S election once properly obtained allows a corporation and its shareholders to avoid the double taxation of C corporations.  This major savings goes into your pocket and overtime will be significant- do not risk losing this right or later finding out that the tax benefit was not able due to an improper S corp election.

Let LegalZoom S Corp election services provide you with peace of mind.

CLICK HERE NOW to review the LegalZoom Incorporation Packages and you will see the S Corporation options as add-ons to the Economy or Standard packages or it is included in the Legal Zoom Gold package which is the most popular package for small business owners.

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In today’s business world, there is a lot of risk to running a business.  You are not only risking your time and capital for hopes of a profit making endeavor but you are also transacting business and interacting with a myriad of other parties such as customers, employees, contractors, banks and the government.

LIABILITY PROTECTION

The number one benefit of incorporation is that you as an owner receive personal liability protection and not automatically held liable for the debts and obligations of the business.  This is a huge advantage because without a corporation as your operating entity, you are completely at risk.

PROFESSIONAL IMAGE

In addition to protection, an incorporation will also provide you with an official business image which really helps to launch a business in today;s cutthroat business world.  By having a corporation, the world sees that you are official and this creates more credibility.

EASIER TO RAISE CAPITAL

The corporation gives business owners an automatic structure for bringing on more investors if needed to help fund or expand a business.  While it is not necessary, it is known that as businesses evolve, there may come a time when injecting capital will take your business to the next level.

By having a corporation in place, you will attract higher quality investors.

Before the Internet was a medium for mainstream commerce, entrepreneurs only had two choices when it came to incorporation.  They could hire an attorney who would handle a professional incorporation of a legal entity and provide legal advice.

Or, for many who are not able to afford an attorney, the could handle the legal entity process themselves by taking the time to learn the state rules and requirements, preparing all the documents required, and working with the state agency to obtain a proper corporation or LLC.

Under both alternatives, there were huge disadvantages.  Lawyers are extremely expensive and while the fees are worth it for obtaining advice, they do not seem warranted to handle the straightforward administrative effort of having a legal entity organized.

On the other hand, when doing it yourself, there is so much uncertainty because the process does involve having a strong understanding of the legal rules and administrative requirements.  If even just one required piece of information is omitted, you could face significant delays and challenges trying to work through the state bureaucracy to get your filing back on track.

Fortunately, there is now a third and best choice alternative for a professional incorporation and this is the purchase of professional incorporation services from a reputable document services company.

Not all companies are experienced enough to handle this so make sure you only work with one that has proven experience in these matters.

You can learn more about the best services on this site, but if you want to know who has the best reputation. . . proven by years of experience handling professional incorporations for the elite law firms in the country, this position would have to go to BizFilings, a sister company of CT Corporation (one of the largest providers of corporate formation and governance services to large law firms and corporate legal departments.

For a limited time, get $15 off their Standard and Complete packages.  Learn More!

You should never purchase an incorporation service from a company solely because they offer more bonuses.  This step for starting a business is so important that it is preferred you go with a reputable and experienced service that offers no bonuses over a cheap and inexperienced company that may offer you a bunch of unrelated bonuses that seem to have value.

Now there are some companies that offer valuable bonuses that actually are relevant to formation.  These include things like a a Bylaws form or LLC Operating Agreement.  The LLC Expert offers a valuable eBook that teaches owners how to maintain their new legal entity.

But then there are companies that will offer things like small business credit services, free registered agent services or even software like Quickbooks.  These are disguised pre-sell products.  They give you a free introduction but then later you will be charged for continuing to use them.

Now, if the bonuses are reputable products and you plan on buying them anyways, this may be something to consider but do not be fooled into thinking that these bonuses are really free.  They are not.

Finally, you want to avoid the incorporating service companies that add an entire laundry list of irrelevant and useless bonus products to your purchase.

The right company for you to use is one who specializes in the incorporating of a corporation or the formation of an LLC.  Insist on a service that does this for an affordable price and backs it with a guarantee.  Do not let purported bonuses cause you to buy a substandard service.  Your liability protection depends on this decision.

The main reason to incorporate a business entity or form an LLC versus operating a business without a legal entity (which is called a sole proprietor structure) is for personal asset protection.

In today’s business world, starting a business can be a profitable endeavor but it is also a risky journey that will be filled with uncertainty and potential problems that must be resolved.

Without the use of a corporation or a limited liability company, the business owner puts his personal liability at risk which means he or she can lose his home, personal savings and any other assets he may accumulate in the future if a business issue might cause a problem in the future.

The business entity laws give you this protection but only if you incorporate once of these entities in strict compliance with your state’s legal requirements.

Anyone can study the state laws and learn the rules and requirements necessary to incorporate a business himself.  If you do this, you must double check all your research and your filing to ensure it is not deficient in any way.

This process takes a lot of time and you still may not feel totally comfortable with your self prepared filings.   Limited liability proteciton only exists if you have a valid incorporated business to start with.

You do not want to find out later that there was a deficiency.  This can cause fees and penalties but even worse, potential loss of liability protection or unintended tax consequences.

If you us an experienced incorporate service to handle this for your business, you save time and gaine peace of mind.  Look for one that provides a compliance guarantee for extra comfort.

For one, employment is just not a stable proposition anymore.  Even in the largest of corporations and the government, people are losing their jobs.  Many that have lost their jobs are realizing that starting their own business, even if a part time one, can create another income stream which means a little more stability.

And, those that are still employed, know that it may only be a matter of time.  Incorporating a business can help provide some diversification.  Also, with your own business, you have more control over your ability to make money and generate income.

Now, with the economy the way it is, can new businesses survive?  Believe it or not, it is the new businesses and the entrepreneurs that wil bring the innovation and value to our economy to eventually turn it around.

Many of our largest and most profitable businesses today were started in a down economy.

If you plan to start a business, even if it is a small one, you must incorporate a business entity for your own protection.  Entrepreneurship is exciting and can be extremely rewarding financially, but it is not without risks.

The best way to protect yourself and your personal assets like your home and other savings is to run your business through a legal entity like a corporation or an LLC.

The most efficient and fastest method for incorporating a business is to use a reputable incorporation services.

It is really difficult to determine which of the hundreds of incorporation services companies on the Internet are real trustworthy businesses. Now, Biz Filings com is a known business with independently proven expertise and competency.

It started online business incorporations back in 1996 and was purchased by one of the largest services and publishing companies in the legal industry. With this backing, it has further improved its top rate service and is now able to keep up to date with all the changing state requirements related to legal entity formations.

You should never risk a task as important as incorporation or LLC organization to an untrustworthy or an inexperienced source because a proper formation is necessary for your legal liability protection. If you choose Biz Filings, you know you have a real, established and experienced company handling your filing.

Biz Filings gives you the option of several package levels depending on how much of the new business process you want them to handle. Higher end packages include a corporate kit and seal, obtaining an employer identification number, also known as an EIN, legal forms, expedited services and rush delivery.

This company has excellent customer service having 7 day phone support and online chat. In addition, their representatives are well trained to answer the standard questions related to new entity formations. You also get secure access to an online status feature to see where your order is in the process and to even store electronic copies of your incorporation documents.

Biz Filings is not limited to just entity formations. They offer many other post incorporation services that may be needed by a growing business. If you need to register a DBA for your business or later need to file an amendment with the state to change a registered agent or a business name, BizFilings offers these services. They also provide state registrations if you do business in other states and some really effective compliance tools to keep your legal entity in good standing. There is certainly an advantage to having one company to deal with for these kind of business needs.

Incorporations and LLC formation do require a certain level of expertise and keeping up with updated state requirements. Many of the lesser known and smaller incorporation services are not able to keep up to date and this has caused many horror stories for new business owners who end up having to wait months for their entity and face potentially grave errors.

In any event, make sure you check the experience and credentials of whoever you choose for legal entity formation. You should insist on the same profile offered by Biz Filings when it comes to competency, experience and customer service.

For a detailed description about Biz Filing Incorporated including available promotions, package descriptions, and customer comments, read the BizFilings description here: Biz Filings Review

This is because most of these companies offer an Expedited Services option where, depending on your state, they can complete the process in as soon as 2-3 business days.  Law firms usually cannot meet these processing times because they are set up more as a professional consultancy.  Usually, you may need to set up an appointment and meet with your lawyer.

So, if time is the most important factor, you should consider a reputable and experienced incorporation service.  Time becomes really essential to new business owners who wait too long to finalize their legal entity.

Many times, these entrepreneurs get to a point where they need to enter into a contract or submit a taxpayer identification number for a business arrangement.  Others may need to provide proof of existence.  In some states, the processing times for a regular incorporation or LLC filing can e as long as 6 to 8 weeks. Business cannot wait that long in most situations.

It is not a good idea to conduct any business without a legal entity as you place your personal liability at risk.  The best solution is to incorporate a business entity as early in your new business process as possible.

However, if time is of the essence, make sure you understand the turnaround times for the package you are buying from your online business incorporation services company BEFORE you purchase.  Some make it difficult to determine this on their websites and in those cases, it is well worth a call to avoid any potential for delays or misunderstandings in what you are buying.

Entrepreneurs incorporate a business or form an LLC for several reasons but the primary purpose is to obtain necessary personal asset protection.  A corporation or an LLC creates a layer of protection between business owner assets and business liability and problems.

This protection is even more important in today’s business world where there is a lot of risk and challenge and there are more predatory lawyers out there looking to prety on small business owners.

When looking for affordable incorporation services, you will find some companies offering extremely low prices, but usually the low price comes with one or both of these two problems.

First, most of them are baiting you with a low price but with that low price, the processing will require 4-8 weeks or more to process. After you have purchased and sent in the information, they will upsell you to a quicker processing time for a lot more money.  Make sure you check turnaround times PRIOR to purchasing.

Second, and even more important is that many of these low cost providers are just tyring to capitalize on a lucrative business by undercutting the professional and reputable providers.  Unfortunately, incorporation services are not so simple and require that there be some experience and knowledge of relevant legal requirements.  And, there is a requirement of professional people who can work on your behalf with state agencies to ensure a proper filing.

Problems with a filing once submitted to a state will cause major delays and are sometimes very hard to get back on the proper path.  And, you risk the disastrous consequence of later finding out you had a defective incorporation. This places all your personal liability protection at risk.

When looking for affordable services incorporated or for LLC formations, gain peace of mind and ensure you have a proper filing by using an experienced and well known provider. These are the ones with a real business behind them and live people to speak to.  These are the ones with experience and who offer a compliance guarantee.

Check out the detailed incorporation services reviews on our home page for details of the best providers or see the direct links on the left of the most recommended providers.