Archive for December 17th, 2007
Should I be an LLC or a Sub-S Corporation?
Before the early ’90’s, the “preferred” form of organization generally was an S corporation because it combined the limited liability associated with a corporate structure with flow-through treatment of tax benefits to its owners. An LLC is sometimes preferred because in addition to each of the aforementioned benefits, an LLC is not subject to many [...]
Is personal liability protected by the corporate form?
In all corporations, shareholders are not personally liable for corporate obligations unless corporate formalities have not been observed. Such formalities provide evidence that the corporation is a separate legal entity from its shareholders. Failure to do so may open the shareholders to liability of the corporation’s debts. Corporate formalities include issuing stock certificates, holding annual [...]
