What Does Incorporating Mean? It is designed to be a SEPARATE legal entity having its own privileges and liabilities distinct of its owners.
A corporation or LLC has the legal capacity to enter into:
- Agreements or contracts - Incur and pay debts - Sue and be sued - Be held responsible for its actions separate from the owner
In the eyes of US Legal system a properly structured and maintained legal entity is considered a “separate person.” Owners can operate behind a “Corporate Veil.”
Incorporation / LLC 101
Why Should You Consider Incorporating (PA) Or Forming An LLC?
Personal Asset Protection
Tax Flexibility / Savings
Additional Credibility Less Risk Of An Audit
Top Producers Do This
Statistically, the TOP PRODUCING agents / brokers across the country have already incorporated!
It is a MINDSET of SUCCESS
Even if you are not at the top yet…..Ask Yourself: “Do I want to make more money by thinking and acting like a TOP PRODUCER ?"
There are several advantages to starting a PA or LLC, but here are a few that stand out:
You can file for a S-Corp designation and have Pass-Through advantages. There's no need to file a corporate tax return. Owners report their share of profit and loss on their individual tax returns, meaning you avoid double taxation.
No residency requirement. Owners need not be U.S. citizens or permanent residents.
Legal protection. Owners have limited liability for business debts and obligations.
Enhanced credibility. Partners, suppliers, and lenders may look more favorably on your business when you've formed a PA or LLC.
How to Form a PA or LLC (Limited Liability Company)
Choose a legal name and reserve it, if the Secretary of State in your state does that sort of thing (not all do).
Draft and file your Articles of Incorporation with your Secretary of State.
Decide who will run the business (managers or members)
Decide how many owners are in the business
Apply for a business license and other certificates specific to your industry.
File Form SS-4 or apply online at the Internal Revenue Service website to obtain an Employer Identification Number (EIN).
Apply for any other ID numbers required by state and local government agencies. Requirements vary from one jurisdiction to another, but generally your business most likely will be required to pay unemployment, disability, and other payroll taxes. You will need tax ID numbers for those accounts in addition to your EIN.
milaar. INTERNATIONAL GROUP, LLC. is a service company and does not offer legal or financial advice.