Can a business thats registed as an Businessname, LLC also be listed as Businessname, Inc?

To elaborate, say XYZ, LLC was formed. Could XYZ also be XYZ, Inc on all documents, correspondence, etc, or does it have to be XYZ, LLC; does XYZ need to be an S, C, or General Corporation to use Inc after it's company name?

Answers:
"LLC" and "Corporation" have many of the same characteristics. The most important characteristic they share is that they both offer limited liability protection to its owners. Typically, shareholders are not liable for the debts and obligations of the corporation; thus, creditors will not come knocking at the door of a shareholder to pay debts of the corporation. In a partnership or sole proprietorship the owner's personal assets may be used to pay debts of the business. With an LLC, the members are not personally liable for the debts and obligations of the corporation.
There are many important differences between the corporation and LLC. The entities are taxed differently. An LLC is a pass-through tax entity. This means that the income to the entity is not taxed at the entity level; however, the entity does complete a tax return. The income or loss as shown on this return is "passed through" the business entity to the individual shareholders or interest holders, and is reported on their individual tax returns.
With a standard corporation, the corporation is a separately taxable entity. Corporations are treated as a separate legal taxable entity for income tax purposes. Therefore, corporations pay tax on their earnings. If corporate earnings are distributed to shareholders in the form of dividends, the corporation does not receive the reasonable business expense deduction, and dividend income is taxed as regular income to the shareholders. Thus, to the extent that earnings are distributed to shareholders as dividends, there is a double tax on earnings at the corporate and shareholder level.

Haha, so in short, you can't change your name from LLC to Inc just becuase you feel like it. You would have to to through the nessecary procedures. (Ie. applying with the IRS and FTC) It would also be a LONG strenuous process to go from a Inc to an LLC.

Hope this helps.

The answers post by the user, for information only, BAnswer.com does not guarantee the right.


More Related Questions and Answers...
  • Do anybody knows anything about swiftbase_forwardingcom@yahoo.it? Please, help me, it is extremely urgent!?
  • I am applying for a job at an organic grosery store. I need help filling in acouple questions. I am 15.?
  • ‘providing assurance of credit worthiness of customers?
  • What do you think would be a reason a board of directors would seek outside advice?
  • How much revenue you need to have and how many years you need to be in business to go public? IPO questions?
  • What can you tell me about the company ACN who sells phone service?
  • Wher is INVESTORS TRUST BANK plc setuated ?
  • Do you think Wal Mart will ever get a union?
  • How can I contact the CEO of Vonage?