Frequently asked.

An LLC's assets are legally separate from its members' personal assets. If the company is sued or owes money, only the company's assets are exposed. Members' homes, savings, and personal property are not.

An LLC's profits flow through to its members and are reported on their personal returns based on ownership percentage. The company itself does not pay federal income tax. Federal individual rates run from 10% to 37%.

Yes. A single-member LLC is the most common form for solo founders. It still provides the liability separation and is taxed as a disregarded entity by default, meaning the member reports profits on their personal return.

No. LLCs are used by startups, mid-size companies, and large operating businesses alike. The structure is flexible enough to serve a one-person consultancy or a multi-state operating company. The same protections and tax flexibility apply at any scale.

A Corporation is its own legal entity. Its assets and liabilities are separate from those of its directors, shareholders, and officers. If the company is sued, only the company's assets are exposed.

A C-Corporation pays its own federal income tax at a flat 21% rate on net profit. When the company distributes dividends, shareholders also pay personal tax on those distributions. State corporate tax varies.

Inc abbreviates Incorporated; Corp abbreviates Corporation. Legally and for tax purposes they are identical. They are not interchangeable as a name suffix though: once you incorporate as one, you keep that suffix on the registered name.

No. Corporations work at any scale, from a one-person founding team to a publicly listed company. There is no minimum partner count and no upper limit on shareholders.

Only US citizens or US residents. The S-Corp is the one US business structure with a strict residency requirement on every shareholder.

No. An S-Corp cannot be owned by foreign nationals. If you are a non-resident founder, the C-Corporation or LLC is your route. We can walk you through which one fits.

An S-Corp can have up to 100 shareholders. The cap is why the structure works for closely-held companies but not for those planning a public offering.

S-Corps use pass-through taxation similar to an LLC. The company itself does not pay corporate income tax. Profits and losses pass to the shareholders, who report them on their personal returns based on ownership percentage.

After filing the return, if there is an amount in your favor relative to the initial withholding paid, the IRS issues a refund check or credits the bank account associated with the company's members.

No. The withholding is charged only to foreign partners of an LLC Partnership. US citizens and residents are not subject to it on their share of US-source partnership income.

Yes, with two rates depending on tax-treaty status. Foreign shareholders without a tax-treaty country pay 30% withholding on declared dividends. Shareholders in countries with a US double-taxation treaty pay 21%. Both withholdings are paid before the funds leave the US.

The IRS can estimate the tax owed, send a formal demand, charge interest, and assess penalties. In serious cases the IRS can take collection action. The cost of late filing is almost always much higher than the cost of filing on time.

Yes. Sales tax follows the principle of physical presence (nexus). An inventory warehouse in another state creates nexus in that state, which means you must register, collect, and file sales tax there as well.

Each state defines its own list of taxable goods and services with category-specific exemptions. Common patterns: most tangible goods are taxable; many services and prescription drugs are not. We confirm taxability for your specific products before filing.

States use sales tax to fund public services: schools, highways, fire departments, infrastructure. Many states rely on sales tax for a substantial share of their budget, which is why enforcement is taken seriously.

It depends on whether you crossed the second state's economic nexus threshold. Most states use a $100,000 in sales OR 200 transactions per year threshold. Below that, no filing required. Above it, you register and file in that state too.