Corporations
Our firm has assisted numerous clients incorporate their businesses in Nevada and California. There are three basic types of corporations which are, Limited Liability Companies (LLCs), "S" corporations and "C" corporations. Most small businesses choose to incorporate as "S" corporations or LLCs. We always encourage our clients to also consult with their business accountant before they decide on which type of corporation they want to form.
"S" corporations and LLCs are pass-through entities. This means that the corporate entities themselves pay no income taxes. All income tax profit and losses are passed through to the shareholders. The shareholders or owners declare the income or losses on their personal income tax returns. "C" corporations will pay income tax on the profits at the corporate entity level. Then if the "C" corporation passes any profits through to the shareholders, the shareholders will also pay income taxes on the same income.
