cyberworldhost
Cyber Specialist
Whats the difference from INC to LLC in detail if you can. Also what is more accepted in the web hosting industry. I see LLC a lot. Thanks for your comments.
Whats the difference from INC to LLC?
- Thread starter cyberworldhost
- Start date
See http://www.bizfilings.com/products/articles/entity_comparison_table.asp
And http://www.bankrate.com/brm/news/biz/Biz_ops/20000831.asp
Between these two posts, it's explained pretty much in depth. I can tell you that we are an LLC Corporation.
And http://www.bankrate.com/brm/news/biz/Biz_ops/20000831.asp
Between these two posts, it's explained pretty much in depth. I can tell you that we are an LLC Corporation.
cyberworldhost
Cyber Specialist
Well I just read the first link and here is what I get out of it. You can sell stock with corpration's and not LLC. Is that correct? With an LLC you can sell interests though subject to operating agreement restrictions.
siforek
New member
Yeah, you're not going to go IPO with an LLC. I did quite a bit of research on the topic years back and rather than try to determine the precise differences I'd suggest to simply determine what's best for you. Keep in mind that you can easily setup an LLC yourself, but an attorney is a must for an Inc IMO. You can change entities in the future as well.
Zachary McClung
New member
There is some misinformation floating around in this thread. I have 1x LLC & 2x C Corps.
The LLC indeed can sell "stocks" that is used very loosely used. As an LLC you sell membershp interest. A LLC can have different levels of membership interests as well.
In addition, with the IRS your able to elect to either be taxed as a flow through entity or you can elect to be taxed like a corporation.
A corporation you can set up different levels and sell stock certificates.
There is some issues that you'll run into though. You cannot sell stocks to the public usually without incurring legal fees of $100k+. I know I did some research on this with our lawyer. However, you can sell private equity/stocks if you fall on one of the exemptions from registering with the securities and exchange commission.
Another big thing to realize is that an Incorporation is its own legal entity. With that being said, your corporate has to follow employment laws in most case whether you are share holder and CEO or not. Some states offer up exemptions; however, you still have hourly miniums, employment taxes, unemployment, and workers comp.
When you do a LLC or S Corp you do not have to worry due to the fact they are flow through entities.
Anyone can setup a LLC or Inc by themselves. Or, use a source like Legal Zoom. The issue does not become the paperwork filing. The issue becomes when you have multiple shareholders or members and you have to write up the more advanced articles of organization.
Also, you have to watch on selling ownership interest. With the tax savings of being able to move money around between paychecks and dividends you cannot beat the corporation in my mind. Course if you were making enough money you wouldn't be at a forum asking you would be consulting an accountant and attorney.
I'm not an attorney and I always recommend seeking legal advice and an accountants advice because rules apply differently in each state of country. I'm telling you based off of the thousands in attorney's fees, an accounting degree, and working with it on a daily basis.
The LLC indeed can sell "stocks" that is used very loosely used. As an LLC you sell membershp interest. A LLC can have different levels of membership interests as well.
In addition, with the IRS your able to elect to either be taxed as a flow through entity or you can elect to be taxed like a corporation.
A corporation you can set up different levels and sell stock certificates.
There is some issues that you'll run into though. You cannot sell stocks to the public usually without incurring legal fees of $100k+. I know I did some research on this with our lawyer. However, you can sell private equity/stocks if you fall on one of the exemptions from registering with the securities and exchange commission.
Another big thing to realize is that an Incorporation is its own legal entity. With that being said, your corporate has to follow employment laws in most case whether you are share holder and CEO or not. Some states offer up exemptions; however, you still have hourly miniums, employment taxes, unemployment, and workers comp.
When you do a LLC or S Corp you do not have to worry due to the fact they are flow through entities.
Anyone can setup a LLC or Inc by themselves. Or, use a source like Legal Zoom. The issue does not become the paperwork filing. The issue becomes when you have multiple shareholders or members and you have to write up the more advanced articles of organization.
Also, you have to watch on selling ownership interest. With the tax savings of being able to move money around between paychecks and dividends you cannot beat the corporation in my mind. Course if you were making enough money you wouldn't be at a forum asking you would be consulting an accountant and attorney.
I'm not an attorney and I always recommend seeking legal advice and an accountants advice because rules apply differently in each state of country. I'm telling you based off of the thousands in attorney's fees, an accounting degree, and working with it on a daily basis.
-
HostingDiscussion
A community for web hosting professionals and enthusiasts, since 2002.
