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Small Business

I have dedicated my practice to serving the legal needs of the residents of Northwest Indiana: Porter County, Lake County, LaPorte County and the surrounding communities.

  • C corporations
  • Subchapter S corporations
  • Limited Liability Organizations
  • Partnerships

  • DISCLAIMER: This site and information contained herein are intended for informational purposes only and should not be construed as legal advice.  Seek competent legal counsel for advice on any legal matter.

C Corporation  

A C Corporation is a legal entity that is formed by filing Articles of Incorporation with the Indiana Secretary of State's Office.  The corporation is responsible for all liabilities and debts of the corporation.  a corporation is owned by the shareholders.  A shareholder enjoys protections from the liabilities and debts of the corporation.  Income is taxed twice: once at the corporate level and then again at the individual level when it is distributed as a dividend.    

S Corporation   

After filing Articles of Incorporation, a corporation may seek to obtain S Corporation status for federal income tax purposes.  Income and losses flow through to the individual shareholder, and it is not taxed at the corporate level.  This means that the income is only taxed once: at the individual level.  The shareholders of an S Corporation likewise enjoy protection from the liabilities and debts of the corporation.  Some of the disadvantages of an S Corporation are: limited number of shareholders are, restrictions on who can be a shareholder, only one class of stock is allowed, unavailability of some stock option plans, fewer tax-free fringe benefits may be available to shareholder-employees of S Corporations tan to shareholder-employees of C  Corporations, and many other fine-tuned differences.  

Limited Liability Company     

An LLC is a formal association which combines the advantages of a corporation's limited liability and the flexibility and single taxation of a general partnership.  A LLC has members rather than shareholders.  A member enjoys protections from the liabilities and debts of the LLC.. If the LLC qualifies under the IRS guidelines, it may be taxed only once, like a partnership, at the employee or member level, while not having the same restrictions as an S Corporation.

Some of the disadvantages of an LLC is that corporate law (as applicable to C and S corporations) is more established and therefore,investors may prefer to invest in corporations vs. LLCs.  Defining and setting up employee stock-option plans is complicated with LLCs.  Also, although a LLC can have different "classes" of stock, that is different types of members,  this is usually accomplished by complicated operating agreements.

General Partnership    

A General Partnership can be formed by two or more individual as co-owners of a for profit business.  Partnerships should operate under a written Partnership Agreement to avoid future problems.  all partners are responsible for the liabilities and debts of the partnership. Partnerships enjoy single taxation.  Income is reported as part of each partner's person income.