Category: FAQs

What is an Entity?

An entity is a business organized according to state law to limit the liability of the owners. Entities can be corporations, limited-liability companies (LLCs) and limited partnerships (LPs). All provide much greater asset...

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What is a corporation?

A corporation is a separate legal entity formed by individuals and/or other business entities for the benefit of limited liability, asset protection, tax savings and ease of ownership. The owners of a corporation are...

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What is a limited partnership?

A limited partnership (LP) is a separate legal entity formed for limited liability and asset protection purposes. The owners of an LP are known as general and limited partners. The management resides exclusively with the general...

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What is a C Corporation?

A C corporation is a corporation that is taxed at two levels. First, the corporation pays corporation taxes on corporate profits. Then, with any money left over, the corporation may distribute profits to the shareholders. These...

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What is an S corporation?

An S corporation is a corporation that has elected to be taxed as a flow though entity (similar to an LLC or LP). The “S” also refers to an IRS code section. Providing for this type of taxation, the S election allows the...

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What is a charging order?

The charging order (especially under Wyoming and Nevada law) is the key asset protection feature of LLCs and LPs. The charging order is a lien against distributions from the LLC or LP. If no distributions are made the judgment...

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