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When launching your business or nonprofit, understanding the distinctions between an LLC, Corporation, and 501(c)(3) is crucial to ensuring a strong start. Below, we’ll walk you through the benefits of each to help you make the best choice.

LLC business formation
LIMITED LIABILITY
corporation business formation
CORPORATION
nonprofit 501c3 formation
NONPROFIT

Business Formation

LLC
LLC

Limited Liability

Top 3 benefits of forming an LLC:

Fewer formalities and legal obligations –

Unlike corporations, LLCs aren’t required to hold board meetings or maintain detailed records for every decision.

Simplicity in setup and management – ​

You can easily establish your LLC and focus on running your business.

Establish

business credit

From protecting your personal assets and your potential tax savings, forming an LLC provides business owners with many significant benefits!

Corporation
corporation formation

Corporation

Incorporate your business quickly and affordably. We handle all state filings to officially form your corporation, while providing personalized bylaws and resolutions that clearly outline ownership and management. Pricing starts at just $195 + fees.

Benefits

Corporations can access lower tax rates, offer stock options and benefits which can make them more attractive to investors.

Compliance

Corporations require stricter compliance rules, including annual shareholder meetings, board of directors meetings, and extensive record-keeping.

Structure

Owned by shareholders who hold stock. Corporations have a more rigid structure, often required to have a board of directors and officers.

Nonprofit
NONPROFIT

Non-Profit

Reasons to incorporate your nonprofit to a 501(c)(3) status:

Tax, Grants + Gift Benefits

As a 501(c)(3) you’re eligible for local, state, and federal tax exemptions. In addition, only qualified nonprofits can receive grants from other nonprofits and government agencies.

Allows you to apply for 501(c)(3) status

Contributions to certain types of nonprofits are tax deductible.

Protecting Your Assets

Trustees and directors are shielded from personal liability for the activities of the nonprofit.

The term 501(c)(3) refers to a specific IRS tax code. To qualify, the nonprofit must meet IRS requirements. If your organization qualifies, we’ll help complete and file your application. We’ll also help with communication initiated by the IRS. Fees will vary.

Toll Free  281-441-4431

Disclaimer: Communications with James Chestnut & Associates, Inc. are protected by our Privacy Policy but not by the attorney-client privilege or as work product. James Chestnut & Associates, Inc. provides consulting services and access to self-help services at your specific direction. We are not a law firm or a substitute for an attorney or law firm. We cannot provide any kind of legal advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options, selection of forms or strategies. The JCA logo is a registered trademark of James Chestnut Corporation. Unauthorized use is strictly prohibited.

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