How to Choose the Right Business Structure: LLC, C-Corp, or S-Corp?
Introduction:
Choosing the right business structure is one of the most important decisions you’ll make when starting your business. The decision impacts everything from your taxes to your personal liability. In this blog, we’ll explore the differences between LLCs, C-Corps, and S-Corps to help you make an informed choice.
LLC (Limited Liability Company):
Flexibility: LLCs offer flexibility in management and taxation. You can choose how the business is taxed (sole proprietorship, partnership, or corporation).
Liability Protection: Your personal assets are protected from business debts.
Best For: Small businesses, freelancers, and startups.
C-Corp (Corporation):
Separate Entity: The business is a completely separate legal entity, offering the highest level of personal liability protection.
Double Taxation: Profits are taxed at both the corporate level and the shareholder level.
Best For: Larger businesses looking to raise capital through investors or go public.
S-Corp (Corporation):
Pass-Through Taxation: Income is passed through to shareholders, avoiding double taxation.
Limited to 100 Shareholders: Best suited for small to medium-sized businesses.
Best For: Businesses looking to combine limited liability with tax benefits.
Conclusion:
Still not sure which structure is best for you? We can help. Contact us for a consultation to ensure you’re setting your business up for success.
