Incorporation/LLC Comparison & Procedure
Incorporation
Name Search
Name Registration - $10 Filing Fee
Articles of Incorporation - $100 Filing Fee
Registered Agent - $100 to $200/year
1st Year Measured Rate State Tax
2nd Year $800 Min. State Tax on 4/15/09
Limited Liability (Corporation is its own entity)
Double Tax (Corporate and Personal, expect sub-section S)
Stock (Raise capital)
Bylaws
Obtain state and local licenses and/or permits (EIN, Re-sellers Permit)
DBA (Fictitious Bus. Name)
More bookkeeping and paperwork than a LLC
Limited Liability Company
Name Search
Name Registration - $10 Filing Fee
Articles of Organization - $70 Filing Fee
Registered Agent - $100 to $200/year
1st Year Measured Rate State Tax on 4/15/09
2nd Year $800 Min. State Tax (unless taxed as Corporation)
Limited Liability (LLC is its own entity)
Members Taxed Individually
LLC Formation Agreement
Obtain state and local licenses and/or permits (EIN, Re-sellers Permit)
DBA (Fictitious Bus. Name)
Less bookkeeping and paperwork than a Corporation
Procedural Steps
1. Name Check (1 day)
2. Name Reservation (1-3 weeks)
3. File Article of Incorporation/Organization (8 to 12 weeks)
4. Bylaws/Formation Agreement - review and modify
5. Obtain licensing/permits, etc. (EIN; re-sellers permit; business tax license; fictitious
business name statement)
6. Open/modify banking/investment/insurance records
7. Select/Order corporate seal, stock certificates
8. Complete and file "Statement by Domestic Stock Corporation"
9. Transfer assets and debts and notify stakeholders (business associates, creditors, etc.)
10. Secure tax advise from accountant/bookkeeper
11. Perform corporate function (bylaws, hold organizational meeting, chose fiscal year)
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