Will Form 1120 C Cooperative 2023-2024

Let's talk about corporations. The types of corporations you can have are an LLC (limited liability corporation), an LLP (limited liability partnership), an S corp, and a c-corp. It's amazing how confusing it can be, but let's break it down to make it simple. If you want corporate credit, you need a c-corp. A c-corp stands for a closed corporation that is privately owned and privately held. With a c-corp, you don't have to guarantee credit. Many CPAs and attorneys will suggest being an S corp for tax savings, as you only file one corporation tax return for yourself and the corporation. However, this only counts if you made enough money. If you're an S corp, you have to guarantee every credit, even down to the office supply card. It's ridiculous. It's better to get a c-corp to build credit, and if you make too much money, you can convert it to an S corp. Another option is the 1244 LLP (limited liability partnership), which can be used for tax purposes. Watch out for credit with an LLP, as if it has credit and files for bankruptcy, you'll lose it. The same goes for an LLC. An LLC should be used for other purposes, such as real estate or conversions, but if it holds liability and goes bad, you'll have to file for bankruptcy. Let's use Donald Trump as an example. He filed bankruptcy on his corporations, not personally, and he could start over with new ones because he had money. If you want divisions within your corporation, you should be aware that if one division gets sued, you could lose them all. To prevent this, you can disconnect the bad division and file for bankruptcy while keeping the other divisions intact. Rich people understand this strategy and stay rich...