Grand Rapids Business Law

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