Many individuals who wish to start their business have to make multiple choices to run a successful business. Among the many questions is whether to register as a corporation or LLC. However, many business owners have no clue about both. The American Samoan government ensures a seamless LLC registration process for businesses. They have launched their online portal and released guidelines and information about LLC formation to aid companies globally.
What is an LLC business structure?
Selecting the right business structure determines the annual fees, meeting schedules, purchasing limits, and sale of ownership interests.
An LLC or limited liability company is a business structure that offers tax benefits and protection for personal assets. However, many individuals mistake the limited liability company with the limited liability corporation.
What is a Corporation business structure?
Forming a corporation is distinct from an LLC as one has to file ‘articles of incorporation.’
Although one has to fill out similar documents and forms essential for LLC registration, it has a different purpose.
As a legal entity, a corporation can employ individuals, borrow funds, and sign agreements with other companies and businesses.
How is a Corporation different from an LLC?
Both business structures have differences and their own set of benefits as follows:
Option for tax elections
Limited liability companies have more options for tax elections than corporations. A corporation is by default taxed as C-corps. Single-member LLCs, on the other hand, have to face taxation as sole proprietors, while multi-member LLCs have to face partnership taxation.
For instance, LLC companies in American Samoa imply business members or owners are exempt from paying state-level taxes.
Business ownership
LLC company owners are known as members. Every member gets a specific company percentage. Since LLCs cannot issue shares, they do not have shareholders. On the contrary, a corporation has shareholders owning a portion of the company stocks.
Maintenance
LLCs and corporations require maintenance for retaining their legal status. However, businesses must note that the maintenance nature and complexity vary immensely. Usually, limited liability companies require regular maintenance in the form of financial reports. One has to file these financial reports with the corresponding LLC state agency.
Maintenance for a corporation is in the form of annual shareholders and board of directors’ meetings and annual report filing.
American Samoa LLC registration
While both business structures have their own set of benefits and protect individuals from personal liability to creditors. An LLC offers businesses the to select their tax election option. Hence, there is zero tax at the company level while the profits and losses are distributed amongst individual owners.
American LLC registration features unique offerings for business owners, right from an online portal to filing guidelines. The unincorporated U.S. territory is becoming popular among new businesses worldwide with such lucrative benefits.
For more information, visit the American Samoa website today.
Media Contact
Company Name: American Samoa LLC
Contact Person: Staff
Email: Send Email
City: Pago Pago
State: American Samoa
Country: United States
Website: llc.as.gov