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wallace
Apprentice
Joined: 01 Dec 2005
Posts: 9
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 Posted: 04/27/08 - 05:33 Post subject: |
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| I am thinking about starting new business with some of my friends. We know what to do but we don't have much experience in running a business. When we were seeking information about starting a new business the officials told us that we must chose among C corp., S corp. or LLc. We didn't understand what they were talking about. Could anybody explain me the difference between C corp., S corp., or LLC and what are those? |
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davie
Apprentice
Joined: 22 Nov 2005
Posts: 3
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| Posted: 05/26/08 - 22:30 Post subject: |
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| C corp., S corp., and LLC are different business structures that you can choose for your new company. Choosing the right business structure could be very important. The main difference between these structures and some others is that the personal assets of their owners can't be reached to settle the obligations of their business. If you have assets it might be very important to you. S corps are good choices for businesses with the limited number of shareholders. LLC or limited liability companies are attractive for investors who want to use initial start-up losses to offset earnings from some other sources. C corps might shows as a good choice if you need some additional capital for your business. These types of companies are preferred by investors because they can have preferred stock. There are some other differences between those three business structures. If you need additional information you can find it on the Internet. There are plenty of discussions on that subject. |
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