When starting a new business, you may be weighing your identity options, such as filing as a corporation or a limited liability company (LLC). It is important to consider the advantages and disadvantages of both to then be able to choose which option you will be used when filing for an EIN number via IRS-EIN-Tax-ID. Consider how much control you want of your expenses, investments and the ownership of the company. It is also important to consider how you want the company to grow.
How they are “ALIKE”
Both an LLC and a Corporation will protect the personal assets of the owner/owners of the business from liability and taxation. Personal and business finances are kept separate. This is important when it comes to personal belongings and property. So, whether you are filling for an LLC tax ID number or a Corporation tax ID number, you will find both are similar in this manner.
How they are “DIFFERENT”
The status of a corporation is best suited for a company that is a larger business that wants to try and gains capital from an outside source. Plus, this option will have more flexibility when it comes to stock options for employees. With an LLC, you have less structure to consider when dealing with ownership, plus there are fewer restrictions when it comes to filing for taxes and paying them.
Learning more about both options and considering the wants and needs of your business will help you know which way to go. It may seem confusing at first, so having help from professionals is key. IRS EIN provides a quality support team that can provide the insight needed to file correctly for your EIN and get on the right track for your business. Use the site for your filing needs to have an EIN quickly and get started with your business.
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