Form an LLC, Corporation, or Business Entity in All 50 States

Professional corporations enjoy tax benefits such as full deduction of health, life, and disability insurance costs for employees, the ability to deduct up to 80% of domestic dividends received, and capital gains on stock sales taxed at lower rates compared to sole proprietorships or partnerships.

A Dual Class LLC admits both General Members (managers) and Limited Members (investors). It allows limited members to avoid self-employment tax by structuring returns as preferred profits, while general members receive income tied to management. It requires a custom Dual Class Operating Agreement.

An Investment Club LLC is a group of people pooling resources to make investments together. Members actively participate in decisions, share profits and losses, and use contributions to buy assets. The structure combines education, group decision-making, and limited liability protection.

Probably the Limited Liability Company (LLC), as it provides flexibility, limited liability, pass-through taxation, and can have up to 100 members. Ownership Units represent contributions and entitle members to profits and losses related to club investments.

A Professional Service LLC is formed by licensed professionals to provide services, such as doctors, lawyers, engineers, or architects. Its name typically includes "Professional Limited-Liability Company" or an abbreviation like PLLC.

This strategy uses a single-owner LLC funded by a 401(k) Plan, allowing direct purchases of real estate or assets. The owner-manager has "checkbook control" without requiring custodian approval for each transaction.

A Self-Directed IRA LLC allows IRA funds to purchase and hold assets directly. The IRA is the member, and the manager has "checkbook control," enabling direct investment without custodian approval for each transaction.

A general partnership is a business formed by two or more people who share profits and losses. Partners act as agents for one another, creating unlimited personal liability. It has flow-through taxation, with profits and losses reported directly on partners' returns.

A Family Limited Partnership (FLP) is a limited partnership owned by family members for asset protection and estate planning. General partners manage the business, while limited partners typically include family members contributing capital or assets.

The FLP protects assets by making them unreachable by creditors of individual partners. Creditors may only obtain charging orders against distributions, but not seize FLP assets. The FLP also isolates liability by holding assets through subsidiaries.

An FLP can reduce estate taxes by gifting limited partnership interests, shifting income to lower-tax-bracket family members, and applying valuation discounts for lack of control and marketability. This provides significant estate planning flexibility.

A Limited Liability Partnership (LLP) is a partnership where partners are not personally liable for the obligations of the partnership. It provides pass-through taxation under Subchapter K and is generally preferred over general partnerships for liability protection.

A Limited Liability Limited Partnership (LLLP) has both general and limited partners, but even general partners benefit from limited liability. It combines limited liability with partnership-style tax treatment and is often used for estate planning and investment ventures.