Essentially, they’re all different corporate entities or business entities. The law treats them as though they are their own person, separate from you. An LLC is one in which you can choose, and some of those things get technical, but you can choose different forms of taxation. There are no shares. There are no requirements such as by-laws or shareholder meetings.
S corps and C corps are when they are corporations. There are requirements for bylaws and shareholder meetings. In the case of a C corporation, you are taxed at the corporate rate. Then dividends can be taxed again. An S corporation, like a C corporation, you can choose the way in which you’re taxed.
It’s very important that if you’re looking to create a business entity that you contact an experienced attorney so that they can create one that fits your business’s individual needs.
Lawyers at the law firm of Mattleman, Weinroth & Miller, P.C., are experienced business attorneys working throughout the state of New Jersey. Contact the office if you have legal questions about your business and set up a free initial consultation.