Are all businesses considered to be corporations? No! Considering the matter, all corporations are presumed to be companies, but not every company is a corporation. Corporations are also known as C corps; they usually are perceived to be large business entities. Shareholders are sometimes known as the owners of a corporation. There is also an S corp; it pays no taxes, and it has particular shareholder restrictions. The owner of an S corp is personally responsible for paying the taxes.
An LLC is not a corporation but considered a hybrid, a cross between a partnership, a sole proprietorship, or a corporation. An LLC is known as a limited liability company.
Both of the above entities are for financial protection against an angry customer who decides to sue the business. Having the security of INC or LLC, an owner can secure their personal property like cars, homes, etc., and protects them from business debts. They are still liable for taxes and private debt.
More of the smaller companies are getting LLCs to protect them from the patrons who would sue them. It seems more people out there are finding issues and reasons to bring litigation against a business. There is a personal gain to them without doing honest work. Creating lawsuits is their way of life. Though we dislike the possibility, companies can face legitimate cases.
Becoming an LLC or corporation can be expensive or not. The filing fee in each state is different. Prices can range from $45.00 to $5000.00, or even more. Remember, you receive what you pay for, no matter what it is. You can file for an LLC or corporation online or go to an attorney who handles such, or companies that manage only these types of enterprises. Each service provider charges extra fees for extra services. There are also several aspects of protection created inside an entity. To secure a private entity, you want to find a company that legally sets up your entity and registers it most securely. Registering your entity must be in a state known for filing said entities. There is a need for businesses to find and use the best security, be it brick and mortar or any digital online occupation. Just as in all decisions concerning your business, you must weigh the pros and cons. We choose what we deem best for ourselves and our situation.
When we ran our garage business, the thought of being a corporation did not enter our minds. We worked and set aside funds each week for our taxes. We started small in a small building. We paid the rent, designated two bays for working, and hung the stock and equipment around on the walls. The guys made do with what they had. When it was necessary, they purchased more equipment to utilize in the garage area. Of course, they purchased tools as needed from the famous tool truck that came around each week. By the time we moved to the new location and a larger building, we had accumulated quite a conglomeration of tools and equipment to transport. Everything was packed up in the old shop with great excitement, and the boys moved into the new one. This new shop gave them more room, more employees, four bays, a separate room for parts and stock, and a designated office. We were all happy, and this is when we deemed it conducive to become a corporation.
It is with relief and a sense of freedom I have left behind the fiat oriented world of controlled business. I have moved into the digital decentralized crypto world of Compumatrix Networks International, INC. The security of our assets and wallets is still a crucial matter. We need protection for all avenues and endeavors attributed to our Compumatrix business.