Can Corporation And LLC Name Be The Same
We are setting up a new investment company. We plan on setting up a corporationa and LLC. Is it alright to name the corporation and the LLC with the same name if they are available? For example if we could do MYCOMPANY, INC and MYCOMPANY,LLC is that wise or too confusing?
Thanks for the help
I've recently formed an LLC for the same purpose. To answer your question...more than likely not. Having 2 different companies with the same name (but different entities) would not be approved of by the state you're filing in. I have a question though...why would you want both an LLC and a corporation for property investment? In my humble opinion a corporation is not always the best vehicle to use for property investment and here's why....
A corporation is generally more money, more paperwork and more time to set up. A corporation also is its own entity separate from you, meaning it also pays its own taxes, while an LLC is a flow through entity that does not owe taxes (unless you elect corporate tax status). There is an advantage to having a corporation over an LLC, once you've paid yourself (and anyone else employed by the corporation as well as company debts) whats left over is taxed at a lower rate (15% up to $75,000 and then at 30% for $75,000+). With an LLC, all income flows through and is reported on your personal 1040 at YOUR personal tax rate (again, unless corporate tax status is requested when setting up the LLC). You will only want to be taxed as a corporation if there will be money left over ($75,000.00 or less) after paying yourself and company liabilities. Also a corporation must follow certain rules that an LLC is not obligated to follow. Corporations must hold anual/quarterly meetings, and "meeting minutes" must be kept on file, to name a couple. Both a corporation and LLC offer asset protection from law suits (providing you opperate within the law), and both offer protection from debt liability in the event of company bankruptcy. In my humble opinion an LLC is the perfect vehicle for real estate investing. You don't "need" a corporation unless you're short on cash and need to sell stock to raise capital....in which case you'd need to keep your investors happy.
Anyway...I hope this helps somewhat....
~T[ Edited by Machine on Date 05/02/2004 ]