Business Incorporations

Incorporate Your Business

Incorporating your business is an essential step in setting up a company. It protects the business and its owners, separates business assets from personal assets, and offers tax benefits. There are several types of business incorporation to choose from, including S-Corp, LLC, and Inc, each with its own advantages and disadvantages. We will review the best incorporation solution for your business at Ruth Maloney Taxes & Investments in Carmichael, CA.

S-Corp

An S-Corp is a type of corporation that provides the limited liability protection of a corporation but with the tax benefits of a partnership. This means the business's profits and losses pass through to the shareholders, who report them on their tax returns. The S-Corp is required to file an annual tax return, but it does not pay federal income taxes.

LLC

An LLC, or Limited Liability Company, is a flexible type of business incorporation that combines a corporation's and a partnership's benefits. It provides limited liability protection for the owners, meaning their assets are protected in case of a lawsuit or debt. Depending on the business's needs, an LLC can be taxed as a sole proprietorship, partnership, S-Corp, or C-Corp.

Inc

An INC, or Corporation, is a separate legal entity from its owners, providing the highest level of personal liability protection. It must follow stricter rules and regulations than an LLC or S-Corp, such as holding annual meetings and maintaining detailed records. Depending on the business's needs, an INC can choose to be taxed as an S-Corp or a C-Corp.


Choosing the correct type of incorporation for your business is crucial for its success. The decision will depend on several factors, such as the number of owners, the business's goals, and the expected profits. It is essential to consult with a professional tax preparer to help navigate the complexities of each type of incorporation and choose the one that best suits your business's needs.

At Ruth Maloney Taxes & Investments, we offer incorporation services for S-Corp, LLC, and Inc. Our team of professionals will help you determine the best option for your business and guide you through the entire process. With our expertise, you can rest assured that your business is set up for success. Call (916) 550-1107.

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