What is the Difference Between a Corporation and an LLC?
If you are someone who is looking to take your business to Amazon and become an Amazon Seller, you’ve come to the right place. Our experienced team has helped countless individuals form successful business on Amazon, and we are ready to do the same for you. That being said, the first part of your journey will be deciding which type of business formation is best for you. The answer largely depends upon your individual circumstances, which is why you must continue reading and speak with our team to learn more. Here are some of the questions you may have:
What are the different types of corporations?
The two most popular types of corporations are known as C Corporations and S Corporations. Essentially, a C corporation is one that is generally best-suited for established companies that have several employees. Though they have many potential benefits, such as the ability to generate capital, limited liability, and corporate tax treatment, they are only for specific types of businesses. The other type of corporation is an S Corporation, which is similar to a C Corporation, though an S Corporation is a flow-through entity when it comes to tax treatment. Simply, put this means that income generated in an S Corporation is only taxed on a personal level. S Corporations generally allow for tax credits, tax savings, and more.
What is an LLC?
An LLC, otherwise known as a Limited Liability Company, is the most common type of business formation among Amazon business owners. This is because Limited Liability Companies allow businesses to receive the same limited liability of corporations, as well as the operational flexibility and tax implications of a partnership, allowing, in many cases, fewer restrictions to profit sharing. If you have any additional questions, please do not hesitate to speak with our experienced team today. We are here to help.
Contact Our Team
If you are an Amazon seller and require the assistance of an experienced Certified Public Accountant, please contact Ebiz Accounting for an initial consultation. We provide Amazon business accounting services to clients in New York and throughout the United States. All Amazon sellers should have an accountant they can trust. If you are looking to expand your business, or even form a new one, do not hesitate to reach out to our knowledgeable team today.