The May Day Committee, must either Start up an LLC, a partnership, a sole proprietorship, an S Corporation, A C Corporation or a Corporation or act as a committee of the Town. As a committee of the Town, you will have the Town handle the cost of the event and all profits for the event, if any will be part of the Town’s.
If you elect to remain independent, this will require an Attorney to handle the matter whether on-line or a private attorney. This should have been explained by the Town, the Town Manager or Officials long time ago. But since Rhett Bullard agreed to allow the Town Premises to be used, Mayor Lofton must make the May Day Committee a volunteer of the Town and handle the arrangements this year, or there will be a requirement for the May day Event to be handled as an LLC, a Corporation, a partnership, an S Corporation or a C Corporation, etc. What is the purpose of the Event; to make a profit or to just allow the people of White Springs and outside of White Springs to enjoy the event.
Mr. Lofton must make a decision with the balance of the council and work closely with the May Day Committee, with at least a resolution. By being a volunteer of the Town, you would not have any personal liability as committee members because it would be up to the Town to handle.
What business type is right for you? When you’re starting a new business, you want to determine the business structure that’s right for you. What’s the difference between a limited liability company (LLC) and a corporation (Inc.)?
LLC vs. Corporation Limited Liability Company (LLC) Shields personal assets from business liability; requires separation of business and personal finances; Allowable in all 50 states and the District of Columbia; Highly flexible management structure Flexible tax reporting options; Preferred by outside investors; Preferred for IPO Recognized outside of the United States
And how is a C corporation different from an S corporation?
The C Corporation requires separation of business and personal finances Allowable in all 50 states and the District of Columbia Highly flexible management structure Flexible tax reporting options Preferred by outside investors Preferred for IPO Recognized outside of the United States
An S corp is considered a “pass-through entity,” which means the business itself isn’t taxed. Instead, income is reported on the owners’ personal tax returns. Businesses taxed as C corporations are not pass through entities. Income is taxed at the corporate level, and, if dividends are distributed, at the individual level as well.
What is an S corporation? After you create a corporation or LLC, you also have the opportunity to decide how you’d like your business to be taxed. Single owner LLCs can be taxed either as a sole proprietorship or a corporation. LLCs with more than one owner can be taxed either as a partnership or a corporation. Income from LLCs treated as sole proprietorships or partnerships is reported directly on the owner’s individual tax returns. New corporations, as well as LLCs considering corporate taxation can choose between filing taxes as a C corporation (“C corp”) or an S corporation (“S corp”).
C-corp or S-corp Here’s a comparison of some key characteristics of businesses that choose to be treated as C corps and S corps. C Designation Owners pay personal income tax on profits Business must pay corporate income tax All business income/loss is passed through to owners each year. No more than 100 shareholders Shareholders must be U.S. citizens or resident aliens
S Designation Owners pay personal income tax on profits Business must pay corporate income tax All business income/loss is passed through to owners each year. No more than 100 shareholders Shareholders must be U.S. citizens or resident aliens You don’t have to decide about S corp status right away. You have 75 days after the formation of your business to file with the IRS. If you’re still not sure what to do, you may want to consult with one of our attorneys or tax specialists.
Karin for the blog