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    3 Replies Latest reply on Feb 16, 2009 7:08 AM by LUCKIEST

    Setting up or S Corporate Business

    americanpmaut Newbie

      We just started our auto repair business a few months ago. We didn't know how to set up business-based credit cards so have been using our personal credit cards for business costs. Just found out we need to set up a C or S corporate business in order to establish credit under company name. How do I set up a C or S corporate business and what's the difference between C and S corporate business?
        • Re: Setting up or S Corporate Business
          LUCKIEST Guide
          Setting up or S Corporate Business, Welcome

          Best of luck with your auto repair business. To set up a business you need a Lawyer.
          You can also go to " IRS.gov " and get a Federal I D Number.
          The difference between a C and an S Corp

          A "C" Corp is a legal entity recognizing the corp as a separate entity, giving the corp its own rights.

          A "S" Corp permits the corp to be taxed as a partnership, with profits taxed to the individual.

          Hope this helps, Talk to a lawyer. LUCKIEST
            • Re: Setting up or S Corporate Business
              americanpmaut Newbie
              I still don't understand which is better for our situation. How do you decide which is better? We are just an small auto repair shop with a couple of employees, rent our building and are still just struggling. We already have a EIN number, have applied for a Dunn and Bradstreet number and have started filling out an application to incorporate our business as a C corp through legalzoom.com but haven't completed the process because we're unsure if we should be a C corp or S corp or nothing at all.