Options for Choosing a Business Entity
Below is a summary of the most common business entity designations:
C-Corporation (C-Corp)
Positives
- Ability to “Go Public”
- Most recognized and respected in the market place
Negatives
- Double Taxation and Conversation Consequences
- Most intense annual reporting
S-Corporation (S-Corp)
Positives
- Pass-through taxation
- Self Employment Tax Protection
- More protection than LLC
Negatives
- Restrictions on Shareholders (Eligibility rules and 100 shareholder maximum)
- More money for setup and annual reporting than LLC
Limited Liability Corporation (LLC)
Positives
- Low startup cost
- Protects your personal assets
- Pass-through taxation
Negatives
- More self-employment tax than S-Corp
- Lower professional appearance