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Video instructions and help with filling out and completing Fill Form 2220 Entities

Instructions and Help about Fill Form 2220 Entities

Hey, my name is Keith Hole. I'm a CPA, and I work exclusively with small business owners just like you. We spend a lot of time talking about lots of different issues, but maybe the first thing you need to think about is what entity form you are going to operate under. Are you going to be a corporation, an LLC, a partnership, or maybe a sole proprietorship? This is an important question, so let's talk a little bit about being a corporation, some pros, and some cons. Now, the corporation is probably the oldest form of organization, the one that is most notable and recognized by people. Those are what you see on the New York Stock Exchange (NYSE). You see the little "INC" after company names like General Motors and American Airlines. All of those companies are corporations, so that may be a nice feel-good. I don't want to put that as a pro or a con, but it is kind of the most recognizable entity. One of the main benefits of a corporation is the protection of its shareholders from the liabilities of the company. The corporation is a completely separate legal entity from its owners, so if the company has losses or gets sued, the shareholders are protected from any of the assets of that corporation. The maximum amount of money a shareholder can lose is whatever they have invested in the company via their shares, just like you would invest in American Airlines. The most you can lose is the value of the stock. So, that's one of the main benefits of operating as a corporation. Another key benefit of operating as a corporation is the intangible benefit of this prestigious form of organization. People recognize the company as a bigger organization. So, from a marketing standpoint, you...