Forums: Discussions for entrepreneurs and small business.

Hello,

 

I am trying to decide on whether to form an LLC, S-corp, or C-corp.

Here are my main concerns:

• I want to be able to hire employees.  Since you cant retain money at the end of the year with an LLC or Scorp, how can I ensure that I have enough money to pay my employees?  Or am I wrong that you have to liquidate your capital at the end of the year in an LLC and S-corp?
• Can an LLC have stock?  I would like to be able to give my employees stock in the company as the goal is to sell it off in a few years.

-------------------------

Miha,

There are a number of things to consider when choosing which type of structure for your business. As to your questions:

1. You are mis informed. They are not required to liquidate their capital at the end of the year.  It is customary for them to distribute enough cash to enable the owners to meet the tax obligations created by the profit pass through.

2. An LLC can distribute equity portions. In an LLC it is called membership units.

Hope this helps. If you would like to discuss your situation- feel free to drop me a Pm or contact me directly.

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com