What sets the corporation apart from all other types of businesses is that a corporation is an independent legal entity, separate from the people who own, control, and manage it. The corporation is viewed as a legal “person” that can enter into contracts, incur debts, and pay taxes apart from its owners. The owners of a corporation have limited liability — that is, they are not personally responsible for the corporation’s debts.
Corporations can be classified as a small business or “S- Corp” versus a “C-Corp” or regular corporation. S-Corps are taxed just like partnerships are and the S-Corp does not pay federal income tax. C-Corps do pay corporate income tax on income and their stockholders pay income tax if they receive stock dividends. Tierney Law Group has extensive experience with forming new corporations, including the preparation of Articles of Incorporation and By-Laws. Contact us now by Email or call us at 925-362-3364 for a free consultation and to form your new corporation.
Limited Liability Companies (LLC)
Limited Liability Companies resemble corporations regarding liability protection but are taxed more like a partnership. Limited Liability Companies may have one or multiple managers or members. Operating agreements governing the members and operation of Limited Liability Companies are essential for maintaining a viable and stable company.
For additional information on forming a Corporation or LLC Email or call us at 925-362-3364 for a free consultation.