Business Formations and Registered Agent Services F.A.Q. - FAQ, advises, how-to, reviews, selections, online sales

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Business Formations and Registered Agent Services F.A.Q. This article lists the three most important and commonly-asked questions involving business formations and registered agents. For questions or comments, please refer to this (http://www.incnow.com) source on business formations.

1. Which is better - a corporation or an L.L.C.?
Generally speaking, an L.L.C. (Limited Liability Company) offers the most benefits to small business owners. Sample benefits include flexibility, a small number of formalities and equal liability protection when compared to a corporation.

Other times an L.L.C. would be preferred:
1. When real estate will be purchased.
2. When any owner will be a non-resident.
3. When owners are worried about filing their own names with the state.
4. When owners want to distribute tax benefits that are disproportionate to ownership.

By now you may be wondering why anyone would choose a corporation after learning about all of these benefits of an LLC. Well, a corporation can also have many advantages that warrant consideration. A few examples of when a corporation would be preferred include:
1. When companies plan on being included in one of the stock exchanges.
2. When companies wish to have investors that prefer stocks, not LLC units.
3. When owners want to create a non-profit corporation.

2. What is this new formation type, the Series L.L.C.?
The Series LLC is a type of Delaware LLC that has the potential for unlimited asset segregation. Under a single LLC you can set up a number of "series" owning separate assets. According to 6 Del. C. Section 18-215, "the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular series shall be enforceable against the assets of such series only, and not against the assets of the company generally or any other series thereof."

3. So which registered agent should I go with?
Unfortunately, this question should be left up to each particular business owner. Since each company has its own set of distinct needs, each individual owner should weigh his or her options.

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