|
Corporate Structure
AA Finance Group knows the business
of business credit and small business financing.
Because we are experts in our field, we can provide
you with the help you need so that your business
will become the success you have always dreamed
it would be.We will help you determine which is
the best form of corporation for you; S Corporation,
C Corporation or an LLC.
C Corporation
"A C corporation (or C corp.) is a corporation
in the United States that, for Federal income
tax purposes, is taxed under 26 U.S.C. § 11
and Subchapter C (26 U.S.C. § 301
et seq.) of Chapter 1 of the Internal Revenue
Code.[1] Most major companies (and many smaller
companies) are treated as C corporations for Federal
income tax purposes. A Corporation must file under
Subchapter C if it fails to meet even one requirement
to qualify as an S Corporation."
S Corporation
"An S corporation, for United States federal
income tax purposes, is a corporation that makes
a valid election to be taxed under Subchapter
S of Chapter 1 of the Internal Revenue Code. In
general, S Corporations do not pay any income
taxes. Instead, the corporation's income or losses
are divided among and passed through to its shareholders.
The shareholders must then report the income or
loss on their own individual income tax returns.
This concept is called single taxation; if the
corporation is taxed as a C Corporation, it will
face double taxation, meaning both the corporation's
profits, and the shareholders' dividends, will
be taxed."
LLC
"A limited liability company (abbreviated
L.L.C. or LLC) in the law of the vast majority
of United States jurisdictions is a legal form
of business company that provides limited liability
to its owners. Often incorrectly called a "limited
liability corporation" (instead of company),
it is a hybrid business entity having certain
characteristics of both a corporation and a partnership
or sole proprietorship (depending on how many
owners there are). The primary characteristic
an LLC shares with a corporation is limited liability,
and the primary characteristic it shares with
a partnership is the availability of pass-through
income taxation. It is often more flexible than
a corporation and it is well-suited for companies
with a single owner."
Non Profit Corporation
"A nonprofit organization (abbreviated NPO,
also not-for-profit) is an organization that does
not distribute its surplus funds to owners or
shareholders, but instead uses them to help pursue
its goals. Examples of NPOs include charities
(i.e. charitable organizations), trade unions,
and public arts organizations. Most governments
and government agencies meet this definition,
but in most countries they are considered a separate
type of organization and not counted as NPOs."
|
