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LLC or Corporation?: How to Choose the Right Form for Your Business, by Anthony Mancuso Attorney
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Decide whether to form an LLC or a corporation -- the most important business decision you'll make.
Your company has grown -- now it's time to upgrade your legal structure to something that will protect you and your assets, as well as provide other benefits. In other words, your business is ready to become either a corporation or a limited liability company.
The question is, "Which one?" The answer isn't always clear -- but because your choice will affect the legal and tax status of your business, it's the most important question you'll need to answer.
LLC or Corporation? will help you make the right choice with plain-English explanations of:
Making the right choice will affect your bottom line in many ways -- from what you pay in taxes to your ability to seek money from investors. The book also provides conversion and formation scenarios that provide a real-world look at all the options available to you.
The 4th edition has been thoroughly and usefully updated with the latest resources for business owners, an expanded discussion on choosing the right form for your business and completely updated information regarding the tax status of small business entities.
- Sales Rank: #1701907 in Books
- Published on: 2010-12-02
- Original language: English
- Number of items: 1
- Dimensions: 9.00" h x .75" w x 7.00" l, 1.09 pounds
- Binding: Paperback
- 308 pages
About the Author
Anthony Mancuso is a corporations and limited liability company expert. He graduated from Hastings College of Law in San Francisco, is a member of the California State Bar, writes books and software in the fields of corporate and LLC law, and studies advanced business taxation at Golden Gate University in San Francisco. He has also been a consultant for Silicon Valley EDA (Electronic Design Automation) companies, most recently working on a C++ open-source integrated circuit database project team. He is the author of several Nolo books on forming and operating corporations (both profit and nonprofit) and limited liability companies. His titles include Incorporate Your Business, How to Form a Nonprofit Corporation (national and California editions), Form Your Own Limited Liability Company, The Corporate Records Handbook, and LLC or Corporation?. He wrote and programmed Nolo's LLC Maker and Incorporator Pro software programs, which generate state-by-state articles and other forms for organizing corporations and LLCs. His books and software have shown over a quarter of a million businesses and organizations how to form a corporation or LLC. He also is a licensed helicopter pilot and has performed for years as a guitarist in many musical idioms.
Most helpful customer reviews
3 of 3 people found the following review helpful.
Good Information
By GreenExamEducation(dot)com
I agree with other reviews that the title of the book is misleading, but overall, the book provides good information.
The information is well organized and explained in plain and simple English. It is easy to read and very helpful. The author thinks LLC is better than S Corporation for the following reasons:
Formation requirements: You must form a C corporation first before you can file the S corporation election with IRS.
Corporation formalities: You need to issue stocks, elect officers, and hold board of directors meeting and shareholders' meeting.
Ownership registrations: S corporation can be owned only by US citizens or residents.
Required allocation of profit and loss: S corporation's profit and loss must be distributed to the shareholders in proportion to their stockholdings.
Limitations of S corporation tax treatment: S corporation's business debts can NOT be passed along to shareholders unless they made personal loan to the firm
Anthony did mention that S corporation owners do enjoy one advantage over LLCs members:
They do NOT have to pay self-employment taxes on their share of business profit: To me, this advantage wipes out all other advantages of LLC, and S corporation is a better form for most small business than LLC. I draw a different conclusion but his information is good and very helpful.
1 of 1 people found the following review helpful.
If you need help in choosing a business form, this book will help.
By Resips
This book is of substantial assistance in choosing what form of business if you are establishing a new business. The book is well organized and it takes one logically through the various entities. Corporations, both C and S corporations are reviewed, as well as LLCs. The advantages and disadvantages of these entities are discussed.
The ease of establishing one business form over another is reviewed as well as the formal requirements necessary. Continuing reporting requirements are discussed. Liability for the business owners is reviewed along with taxation considerations.
There are advantages as well as disadvantages to most business forms, sole proprietorships, partnerships, corporations, both standard and C, and LLCs. This book is a good basic volume addressing the various considerations one must address before choosing the most appropriate business form.
I think it is an excellent introduction to the subject.
1 of 1 people found the following review helpful.
Pretty good review of LLC vs Corporation
By Artoo
The book covers the differences between Sole proprietorships, partnerships, LLCs, Corporations, Limited Partnerships, and S Corporations.
It covers the liability issues related to each entity choice and how to best protect yourself when running your business.
A chapter is dedicated to taxes and a whole part of the book is dedicated to converting one business entity to another.
I was interested in the part about converting an LLC to being taxed as an S Corp, but still remaining an LLC. Unfortunately, I found this section lacking in specifics about how to do so and the implications. The book talks a lot about actually converting entity types, but if you're looking to have an LLC taxed as an S Corp there wasn't much help as to the specifics and tips on what the implications are when that happens.
Otherwise, it's a pretty good book choosing an entity type.
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