A corporation which elects taxation under Subchapter S of the Internal Revenue Code is treated much like a partnership for tax purposes. Limited liability companies are taxed the same as partnerships. Top of Page Funding Sole proprietorships generally find themselves limited to borrowing money, usually from a bank, to fund their business. Partnerships can seek funding either through loans or by bringing in additional partners or limited partners who make capital contributions to join the partnership. Existing partners can also be asked to make additional capital contributions.
Corporations have several options for raising money.
They can borrow money, seek additional investors to purchase common or preferred stock, and possibly issue other corporate securities such as corporate bonds. The funding of limited liability companies is similar to that of partnerships. We will endeavor to respond promptly but will not provide specific legal advice by email except to established clients. Please see our Notices and Disclaimers . Except as otherwise noted on particular pages, this entire web site is Copyright 1998-2001 by Scott Law Firm Professional Corporation, Columbia, Missouri, U.S.A. Site visitors may reproduce materials on this site for personal use only.