incorporating?

[blondi372]

What is the name of your state?
Georgia.

My boyfriend has started a retail fixture installation company and wants to incorporate. I am a little confused by the whole process. Could he become an LLC? If he become a LLC what are the rules for if he wanted to sell the company later down the road?

 

[chrissie]

Hi,

Not sure what you're asking exactly. It is possible to form an LLC, and the owner of an LLC has the right to sell his company. Can you be a little more specific as to the source of your confusion?

 

[blondi372]

incorporating??

I am not quite sure. I am confused about alot on the whole incorporating thing. What I think we need to know is in an LLC I know the time period it is established is limited. I have read that the LLC is dissolved at the death, withdrawal, resignation, explusion or bankruptcy. I have also read that the transferability of an LLC is not as easy as when you have an S-Corp. I am just trying to figure out which one would be better for him to do. A LLC or S-Corp.

 

[chrissie]

Well, depending on the state of formation, an LLC can have perpetual existence. As far as transferability, that depends on what you're referring to. As I understand it, it is easier to convert property from personal use to an LLC and vice versa (with no tax consequence).

Generally speaking, an LLC is easier in terms of management and operational flexibility. LLCs are not subject to the same formal recordkeeping requirements as corporations. And single-member LLCs are taxed as sole proprietorships by default, resulting in less paperwork.

However, an S-corp does have certain advantages, and it really depends on your boyfriend's unique business/financial/tax situation. You should read this article, which uses real-life examples to compare the differences between an S-corp and an LLC:

S Corp vs. LLC: Which Structure is Right for Your Business?

 

[blondi372]

incorporating???

Thank you so much. That page was very helpful to me.

 

[chrissie]

My pleasure.