LLC, or Limited Liability Company. This business structure protects you from personal responsibility for the company’s debts or liabilities.

An LLC gives you protection from debt collectors and lawsuits involving the company, just as a corporation would. But unlike a corporation, the LLC allows what’s called “flow through” for tax purposes.
The LLC doesn’t pay corporate income taxes. The company’s profits and losses (or deductions) are passed on to the members of the LLC.
With an LLC it’s easier to set up than a corporation .
An LLC may have to be dissolved if a member dies or files for bankruptcy.
The ownership or equity stake of an LLC cannot be publicly traded. But for many folks starting a business, forming an LLC is a great way to get started.

C-corp … the C-corp is different from LLC as it does not allow a “flow through” treatment of profits and losses for tax purposes.

A C-corp is subject to corporate income taxation.
A C-corp requires you to hold annual meetings and have a board of directors that’s voted on by shareholders.
A benefit to a C-corp is that it lives beyond the life of an individual owner, since they have many owners called shareholders.
C-corp also allows for passive income for the shareholders

S-corp … This structure has the best features of both the LLC and the C-corp.

The S-corp provides you with liability protection, but also allows you to pass profits and losses directly to shareholders, so you’re only taxed once.
The S-corp avoids the double taxation inherent in the C-corp.
Filing as an S corp can also reduce personal income taxes for the business owners, by characterizing money they receive from the business as salary or dividends to owners.

Those are the advantages and disadvantages of the 3 most common company structures … just in case you’re thinking about starting your own business one day.

On today’s program, Rob also answers listener questions:

Jordan from Florida has investments with Fidelity and Vangaurd, and he wants to know which one is better.
Sherilynn from Idaho recently was widowed and has sold a house and bought another cheaper one and wants to know what is the best way to invest her funds.
Ann in Akron is looking for a used car and wondering if this is a better time to buy.
Dora has a small ira, and would like to give some to her church, and is curious about the qualified charitable distributions.

Remember, you can call in to ask your questions most days at (800) 525-7000. Also, visit our website at FaithFi.com where you can join the FaithFi Community, and give as we expand our outreach.

Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources.

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#947: Viewer Calls

The Atheist Experience

Outro

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