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Ask HN: Should I change my Co from C Corp to S Corp?
I formed a C Corp anticipating funding but things didn't happen. Now it has become a huge liability. But the product is on track and the revenue will be small. I somehow plan to bootstrap. Should I convert C to S Corp or any other advice if you ever had dealt with such a situation.
- icedchai 8y agoHow is it a "huge liability"? Best to ask an accountant.
- xq3000 8y agoIn my experience, this is mostly a taxation question. Just do the math for both options and see which way you’d pay less taxes. It used to be that an S Corp would be more efficent up until your total personal income/wages from all sources hits $120k a year or so. Only after that, a C Corp becomes more efficient. * This is mostly about wages but if you also pay yourself dividends, you should factor them in too