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Are there any tax issues?

LLC Formation or Incorporation Filing Service

With Sole Proprietorships and General Partnerships, there is little legal separation of the owners from the businesses. So the owners are taxed on all money that their businesses make.

Corporations are recognized as entities separate from the owners by default, so theCorporation is taxed on all money that it makes. Then additionally, the owners are taxed on all money that they paythemselves from the Corporation. This is commonly known as "double taxation". Or some states allow you to file to be aspecial type of Corporation called an S-Corporation, in which taxation is the same as with Sole Proprietorships and General Partnerships.

LLCs are the opposite. By default the taxation is the same as for SoleProprietorships and General Partnerships. Or some states allow you to file to have the taxation be the same as the defaultfor Corporations, where the LLC is taxed on money it makes, then additionally its owners are taxed on money that they paythemselves from it.

For more details, consult one of the many books written on this subject, or a localtax professional.

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