Hi!
I need a small help here.
In India we have a propriety concern (single owner) , a partnership concern (two people) , a private limited company (more than two share holders) and a public limited company (listed company) ....
However, the US is a bit more confusing ...... :(
Which is better an LLC or an Inc.
i.e. as a client would you trust an LLC more or an Inc.
As a provider would you trust an LLC more or an Inc.

Or are both considered the same...

Also, if somebody can explain the difference in the two it would be a great help.

Have a great day :)

Regards
Amar

LLC is usually less expensive, less hassle with the Gov. and can be owned and run by a single entitiy.

Inc. Is more paperwork, more money and has a multi party infrastructure.(more than two share holders)

IMHO, Both LLC. and Inc. are acceptable from the clients point of view.

Hmmm... Maybe I should elaborate.

LLC (Limited Liability Corporation)
A non corporate form of doing business, providing owner/owners with Limited liability, flow through tax treatment and operating flexability. Suitable for every type of business venture with the exceptions of financial institutions and insurance companies.
(Minimum of one owner)


INC. (Corporations)
A Distinct Legal Entity and the most complex form of orginization.
May sell shares of stock, which are certificates of ownership.
The shareholders then elect a board of directors to run the daily operations.
Articles of incorporation must be filed witht he secretary of state, and the corporation will be required to file annual reports with the secretary of state.

Hope this helps, MJ.

Hello
India and the Uk have similar systems.

LLC is rather like a UK partnership but with some limit to liability.

INC is like a Ltd company.

The disadvantage of an INC in the US is that you get taxed twice.
Once on money paid to directors and once again for the same money when it appears as profits in your balance sheet.

Clever people run a US corporation to pay their US suppliers and make no profit from it.
This avoids corporation tax in their home jurisdiction on at leats par tof their income.


We are considering moving our buseness to Sark.
You might as well go the whole hog.....................


Gordon

Originally posted by DefiantPc
LLC is usually less expensive, less hassle with the Gov. and can be owned and run by a single entitiy.

Inc. Is more paperwork, more money and has a multi party infrastructure.(more than two share holders) It varies by state, but in general in the US a corporation may have just one owner. I also wouldn't simply state that an LLC is less expensive -- here in NY for example the fee for creating an LLC is about twice that for a corporation. There may be less hassle if your talking about from a tax standpoint, but that depends on what entity election you might make as an LLC.

The bottom line, though, is there is no one answer to the question "which is better..."

A site search would find several long threads here weighing the pros and cons of each.

I recommend www.nolo.com then click on small business. Very good site that lists lots of information about the different business types available.

are PLC :D

Hi!
Thanks this was really a wonderful site. Very informative... :)

Have a great day :)

regards
Amar

Originally posted by jarrod
I recommend www.nolo.com then click on small business. Very good site that lists lots of information about the different business types available.