3 ms·
For tax purposes it would be best to request to be taxed as an S-Corp. You can then incorporate as an LLC or a corporation.
by itsthisjustin 11y ago
For tax purposes it would be best to request to be taxed as an S-Corp. You can then incorporate as an LLC or a corporation.
- taf2 11y agoThis usually assumes a larger net income for the business - I believe when you are just starting out LLC makes the most sense then you can transits ion to S-Corp once renvues hit a few million
- tdfx 11y agoYou can incorporate as an LLC and elect to be taxed as an S-Corp.
- karmelapple 11y agoOne important point when doing this: you must do payroll. Depending on if you have no money coming in, or a small amount of money, it may not be worth it to do payroll... but that's only for the smallest of businesses.
- yinghang 11y agoFounders/owners of a S-Corp have to be Americans.
- allcentury 11y agoIndeed, an S-Corp is typically the best decision when starting.
- jzieger2 11y agoIn many cases it's true that an S-Corp or LLC will be preferable for a business, because they can be treated as pass through entities (under the IRS check the box regulations) and not subject to federal income tax at the corporate level. But S-Corp's have some significant limitations for a startup company seeking investment--most importantly, they cannot have multiple classes of stock. As others have mentioned, we've started with the C-Corp form because we think it will be what most of our users would prefer initially, but we'll look at expanding it to other forms.