4 ms·
Ask HN: Best incorporation type for a consulting company?
Is there one type of incorporation that is best used to establish a consulting company? Looks like most startups are recommended to be a DE incorporated C-corp, is there a similar "best of" set up for the consulting company case?
Looking to establish a legal entity with tax ID, will likely never take outside investment, profit / loss will vary year to year, and want legal separation between "the consultants" and "the company".
Have been advised that an S-corp or LLC would be the way to go, but wanted to hear from the HN community.
- byoung2 16y agoIf you are never going to take outside investment, an LLC would be simpler to set up and maintain. You would have a separate legal entity, limited personal liability for the members, and pass-through taxation. With an S or C corp, there are annual reporting requirements, and you need to elect a board and hold annual meetings.
- jfi 16y agoAwesome, thank you very much! I can't foresee taking outside investment as this is really more of a shell company for our projects and not something that lends itself to outside investment.