S Corporations
S corporations are similar to limited liability companies in that they both offer their owners limited liability protection, in addition to being pass-through tax entities. This basically means that any income or loss generated by the company can be placed on the income tax return of the owners, thus avoiding double taxation. Nevertheless, beyond these similarities, the two structures are actually quite different.
S Corporations versus Limited Liability Companies
Ownership rules are very different between the two entities. S corporations limit the amount of owners to 75, while an LLC can have an unlimited amount of members. Additionally, S corporations require all shareholders to be US citizens, while LLCs do not. Additionally, LLCs have a more flexible format of profit distribution as opposed to the restricted rules that S corporations have to follow.
With these differences, why would individuals want to form an S corporation in Nevada? First of all, an S corporation only requires one individual to form it, while many states require at least two members per LLC. Additionally, LLCs have a short lifespan, disappearing after the death or bankruptcy of a member, while S corporations have a perpetual existence, regardless of such occurrences.
Finally, as opposed to LLCs, interest or stock in S corporations can be traded without the approval of other members. Here, we specialize in simplifying the process of forming an S corporation in the state of Nevada. Thanks to its favorable corporate tax code, Nevada has rapidly become the best place to incorporate in the entire United States and we want to help you achieve your goals successfully.