Most partnership and sole proprietorship have been wondering what if they incorporate their business with S Corporation. There is the curiosity of what are the advantages and disadvantages of joining this kind of corporation in Florida. For the Internal Revenue Service, S Corp is a pass-through business entity because of the way you file your business t get incorporated. You need to file the Article of Incorporation on the Secretary of State or any government personal that is in the same level. You can read about this corporation here at Sunbiz.org florida. But before you have to decide to join, you have to at least know what is there in this entity. How can your business benefit from it? Here are some honest reviews you can read.
- Protect personal assets. The good thing about this corporation is that it aims to separate your personal assets from the business. This is to protect it from any business liabilities and debts. The creditor will not force to collect debts from any personal assets of the shareholders to satisfy the liability of the corporation.
- Add credibility. To new businesses, the S Corp helps them to maximize their credibility. This is very helpful in terms of applying bank loans.
- Easy transfer of ownership. Unlike LLC, www.llcfl.net, transferring of ownership is not difficult on tax issues. The owner will not be obliged to do some adjustments or compile accounting details.
- Expenses on the process of filing. There are formation and ongoing fees that a company must pay when incorporating the business. Even though these fees are not that expensive but still the sole proprietorship and partnerships are cheaper.
- Not so flexible. The corporation cannot allocate any income and loss to the shareholders because it is one-class-of-stock restriction policy.
From here you can read few of the many reviews about S Corporation and comparison to LLC.