WHICH TYPE OF CORPORATE STRUCTURE IS RIGHT FOR YOU?

C-Corporation (General for Profit): When choosing a corporate form, it is important to be aware that the profits of a C-Corporation are subject to double taxation, and therefore earnings are taxed twice, once at the corporate level, and again when profits are distributed as dividends to the shareholders. However, a corporation meeting certain requirements (set by the IRS) may file for Subchapter S Corporate status. This corporate election allows owners of an S Corporation to elect to be taxed only at the personal level, thus avoiding tax at the corporate level.

S-Corporation: An S-Corporation is a tax designation only. This type of corporation is typically for smaller companies. It provides the benefits of incorporation, while eliminating double taxation. In that instance, the corporation's profits and losses are recognized in the shareholders' personal return.

Limited Liability Company ("LLC"): A limited liability company is a separate legal entity like a corporation, but an LLC is not subject to double taxation. The owners of an LLC , called members, are not personally liable for the debts and liabilities of the LLC. LLCs are often a favored corporate entity because they are considered very flexible and simple to run, and the LLC forms can be completed fairly easily and quickly.

Go to mycorporation.com to learn more about which type of corporate structure is right for your business!