Depending on your type of business, you have three options for incorporating: C corporation, S corporation, or LLC. Each option requires formal documentation and
must be filed with the appropriate state agency.
A C corporation might be the right business type for you if you:
– May need venture capital for financing
– Want flexible profit-sharing among owners
– Want company earnings to stay in your business so that it can grow
An S corporation might be the right business type for you if:
– You want to take advantage of benefits that the corporate business type holds, but you want to take advantage of pass-through taxation
– You want the flexibility to set salaries for employee/owners to minimize Social Security and Medicare taxes
– Flexibility of accounting methods is desired
An LLC might be the right type of business for you if:
– Your startup company anticipates losses for at least two years, and you want to be able to pass the losses through to yourself and the other owners
– Flexibility for accounting methods is desired because LLCs are not required to use the accrual method of accounting as C corporations typically are:
– Your business may own real estate
– You want management flexibility
The above are just a few of many examples. You can contact our office any time for more information about which type of incorporation is right for your business.
