When starting a new business, it can be confusing to understand the difference between entities. As a result, our focus will be LLCs and corporations.

Heads Up

That is to say,  when I speak about corporations I’m referencing the entity type. As well as, C corp tax status the (default tax status). Furthermore, I’m focusing on c corporation, not s corporation. LLCs and corporations are both state formed entity types that businesses can choose to operate as. They become their own separate entity apart from the owner.

The Difference

The formation for LLCs and corporations are the same with a slight difference. An LLC if formed by filling an articles of organization with the secretary of state you want the business to be formed. While a corporation files an articles of incorporation. For instance, articles of corporation is more lengthy and detailed compared to the articles of organization. However, this will vary from state to state. Though generally there’s more that goes into an articles of incorporation. There’s an even bigger difference when it comes to other corporate formalities related to formation of the business. Being that, corporations are usually required to do certain things.

Find out what exactly corporation are required to do in this episode of All Up In Yo’ Business,. Check out the full video to learn more!

Contact us today if you’re in Colorado and need help with forming your business. If you’d like more business tips, be sure to subscribe to our YouTube channel for more All Up In Yo’ Business.

Want to learn more about LLC’s? Check out: Should I form an LLC?

Post

Comments

0 Comments

You may

Also like

Using a Virtual Address for LLC Registration

Using a Virtual Address for LLC Registration

When a business starts and is looking at registering as a Limited Liability Company (LLC), their first thought is probably about office space. Not only does having a fancy office space give your business a more professional feel, but it allows you to put a physical...

read more

10 Legal Tips for Starting a Business in 2022

If you're starting a new business venture, you'll want to make sure to take a few legal steps so your business is legally protected and set up for success from the very beginning. You may have a great new business idea and you're ready to launch, but you have to make...

read more