Clarus Marketing Group Inc….?
For whatever reason, the Internet is a place where it is very easy for misinformation about individuals and even entire companies to show up. I’ve seen some forums where there are people talking about freeshipping.com, a subscription service that offers free shipping benefits, and its parent company Clarus Marketing Group Inc. The only problem here is that Clarus Marketing Group is not an “inc.”—a C corporation—but is rather an LLC. The differences between a C corporation in the sense we all think of and a limited liability company (LLC) are many, and they are important differences too. LLCs have fewer “corporate formalities” that place requirements on businesses pertaining to things like board of director meetings and shareholder relations. LLCs also have no ownership restrictions, whereas something like an S corporation places limits on the number of shareholders legally allowed. LLCs are also afforded more tax flexibility on the whole than corporations or “inc.” companies.
Another thing I sometimes see debate about on the Web is the difference between a “buying club” and a “subscription service”. Buying clubs generally refer to companies that offer merchandise to their customers on a recurring basis, be it monthly, annually, bi-annually, or what have you. In a buying club, the customer is billed at specific intervals for physical products that they may or may not want. Clarus Marketing’s Freeshipping.com is not a buying club; it is actually a subscription service that gives you access to free shipping deals on many websites that are part of its network; there is no requirement to purchase items you don’t want. So, Clarus Marketing is not an Inc., but an LLC, and not a buying club, but a subscription service.