LLC vs. Corporation: What’s the Best Startup Structure? | AllBusiness.com

September 25, 2025September 24, 2025 ~ knjohn ~ Leave a comment

Many startup businesses are started as one of three business entities: a Limited Liability Company (LLC), an S corporation, or a C corporation. So how do they differ, and which is the best startup structure? In this article, I explain the differences between these three business structures and highlight the pros and cons of each.

S Corporations

What Is an S Corporation? An S corporation is a legal entity used to form and operate a business, and which offers the benefit of “pass-through” taxation.

How Is an S Corporation Formed?

Either an “Articles of Incorporation” or “Certificate of Incorporation” form is filed with the Secretary of State in the state you decide to incorporate in.

How to Become a B Corp in 5 Steps | All Business

March 28, 2024March 27, 2024 ~ knjohn ~ Leave a comment

Would you like to be the best business in the world or be the best business for the world?

Look closely at the two options. The key differentiators are in italics. A company that wishes to be the best business in the world ultimately does not share the same outlook as the one that wants to be the best for the world. These latter companies use business as a force for good. They are known as B Corporations: purpose-driven corporations that create benefit for all stakeholders.

What’s a B Corporation?

Incorporating as a B Corporation means following a slightly different process than that of forming a limited liability company (LLC) or a general corporation.

5 Tips for Building Business Credit for Your New LLC | Entrepreneur

February 24, 2023February 21, 2023 ~ knjohn ~ Leave a comment

Starting a new LLC (Limited Liability Company) can be a great way to establish your business and build a strong financial foundation. One of the key elements to building a successful business is developing good business credit. A strong business credit score can help you secure financing, negotiate better terms with suppliers, and create a professional image for your company. Here are five ways to build business credit for your new LLC:

1. Get an Employer Identification Number (EIN)

The first step in building business credit is to get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number serves as a unique identifier for your business and is used to open bank accounts, apply for business loans and establish business credit.

An EIN is crucial in separating your personal and business finances, which is important for both tax purposes and building a strong business credit profile. The process of obtaining an EIN is straightforward and can be completed online or through the mail in a matter of minutes. It is important to note that having an EIN does not automatically establish business credit, but it is a crucial step in the process.

Redomestication: How to Move an LLC or Corporation | AllBusiness.com

August 25, 2021August 24, 2021 ~ knjohn ~ Leave a comment

Redomestication refers to when a business changes the state that’s considered its home state (also known as its “domicile state”). It’s a process that shifts a company’s charter to a different state, altering its residence.

Before I get into what’s involved with redomestication, let’s first talk about “domestication” and a business’s domicile.

Business domestication and domicile

Generally, a limited liability company or corporation’s domicile state is the state where the business was legally formed. Domestication, establishing a home state, gets completed by filing forms called Articles of Organization (LLC) or Articles of Incorporation (corporation). The domicile is usually where the principal place of business resides.

LLC vs. Inc.: Which Entity Is Right for Your Business? | Business News Daily

August 27, 2020August 26, 2020 ~ knjohn ~ Leave a comment

LLCs limit owner liability and offer more flexible taxation as a pass-through entity.

Corporations, such as S-corps and C-corps, are entities for larger, profitable businesses or those with shareholders.

How you incorporate your business entity has a profound effect on the organization of your company, the distribution of profits and losses, and the way your business is taxed.

This article is for entrepreneurs trying to determine the best type of business entity for their company when preparing to incorporate.

How to Change Your Business Structure | business.com

July 3, 2020July 1, 2020 ~ knjohn ~ Leave a comment

Is your original business structure no longer a good fit for your company? Change it.

The business structure for your company is one of the most important decisions you’ll ever make. However, you can change the structure at any time.

Most owners review liability protections and tax advantages as part of choosing the right business structure.

Common business structures include corporations, partnerships, sole proprietorships, cooperatives and limited liability companies.

Your business structure is the backbone of your company. It dictates your control, liability, and taxes and sets the pace for your entrepreneurial journey. However, the first structure you choose doesn’t have to be permanent.

LLC vs. S-Corporation: What’s Better for Your Business? | Business News Daily

December 6, 2019December 5, 2019 ~ knjohn ~ Leave a comment

The business structure you choose dictates your path to commercial success, but choosing the right entity requires extensive research and personal reflection. Each structure has its own set of guidelines, benefits and drawbacks.

How do you know if you should set your business up as a limited liability company (LLC) or an S-corp? We spoke with accountants and business advisors to get their take.

Should Your LLC Elect S Corporation Status? | Allbusiness.com

June 11, 2014 ~ knjohn ~ Leave a comment

Many entrepreneurs choose to structure their businesses as the ever-so-popular LLC Limited Liability Company or S Corporation. Business owners may struggle with the choice between the structures, but many times but don’t realize that the two aren’t mutually exclusive. It’s possible to have your cake and eat it too by forming an LLC and then electing S corporation status.This is a particularly sound strategy if you have an LLC and the payroll taxes self-employment taxes on the owner/s are high. Here we’ll break down some of the key details on why you should consider an LLC with S corporation election, and how you go about doing it.