Mike Vaughn, Attorney and Counselor at Law
     1198 Pacific Coast Hwy D 347, Seal Beach, CA 90740
     Direct Tel: 562-592-9350 Fax:  562.684.4459
     Email:  mike@vaughnlawoffice.com

CORPORATIONS

CORPORATIONS are creation of law which allow people to engage in business and reduce the risk that the liability of the business will destroy them.  It is a risk reducing entity if used property.

There is always costs involved in organizing and maintaining a corporation.  It will also have tax consequences which you much be cognizant of  before starting

C-corporation distribute their profit by paying stock dividends to the shareholders.  S-corporation have the profits taxed directly to the shareholders in proportion to their ownership.

LIMITED LIABILITY COMPANY (LLC)

A Limited Liability Company is a fairly recent creation of the law.  It simplifies the record keeping and management of the company by not requiring much of the record keeping required of a corporation.  However, the ease of the management of an LLC may also complicate investment, loans and sale of the company.