First topic - Form/Organization of your business?

Cataluña is an LLC. I chose that because it's what I need to be covered. It is just me in my business and a limited liabilty company helps if someone sues me. They can only go after my business, not me personally. It's a nice blanket to have to protect me just in case something goes terribly wrong with a client. You hate to think the worst, but when you have a business you have to protect yourself. The same thing holds true with contracts.

Brooke

Please excuse my ignorance but what are LLC and S-corp?

S-Corp - When you incorporate in the U.S. you choose either S or C type. It has to do mainly with taxes. An S-corp the profits/losses "flow through" to the share holders on their own individual taxes. The corp itself doesn't pay taxes. With a C-corp the company pays taxes on it's profits and anything distributed to the shareholders is also taxed to the shareholder (double taxation). There are some other points but that's the main one.

LLC - Limited Liability Company - It's basically a partnership but with many of the liability protection of a corporation.

Brooke - Be careful! You may be an LLC but not have the liability protection you think. Professional liability is different from other liability. If an engineer forms an LLC (or corp) company, makes a shotty design they can still be sued for professional liability. Being a corp or LLC won't protect them. ( Not a lawyer, not a legal opinion! )

Jaiem,

Thanks for the info. When I first formed my company I consulted with an Internet Lawyer. For what I am doing this was the best way to get covered. But I get what you are saying!

Brooke

I think my company is both Profits undergo the same double taxation you described + it's an LLC. We use the term Limited - so my company is TCS Ltd. I understand that the American version is inc.

I don't think that was a wise choice on my part. So far I don't make a lot of money and there are extra expenses to having a registered company...

Anat - It's a corp. "Limited" and "Ltd." mean the samething, i.e. limited liability. I'm not sure about In the U.S. a corp must use one of the terms "corporation", "corp", "incorporated", "inc", "limited" or "Ltd." in it's name to indicate it's an incorporation. Sometimes you'll see a business name with the word "unlimited". That's usually a sole prop or a partnership. I'm pretty sure Israeli business are similar.

BTW, what part of Israel are you from?

I used to live in Tel Aviv but we moved out to the country 2 months ago. Now we live north to Tel Aviv (50 minutes drive) in a town calles Pardes Hana.

Have you ever been to Israel?

Been there twice, once for 3 weeks and once for a month. Glad I went. Some of the places we visited you can't go now (like into the Sini) or for security reasons.

Brooke-is your LLC registered in the state you live or did you register in a different state? I've been trying to find out 2 things. Is there a "best" to register an LLC and can you register an LLC in any state? I know that many companies incorporate in other states IE-Delaware because of business advantages, I just cant find anywhere to tell me if that same applies to LLC's.
Thanks,

cigam you do understand that this is a 5 years old thread?

lol OMG incredible, I have never seen a thread that old getting actual replies. It looks like you guys have been around for a while now, interesting.

over here in the UK it's sole-trader, partnership or Limited Company.