Hi asit99! Welcome to our community! Choosing the correct business structure for your company may be one of the most important decisions you'll ever make, so you're wise in trying to get all the information you can. Steve Strauss, one of the world's leading experts on small business has written a great article, Choosing the Right Structure for Your Business, that lists the pros and cons of the different formats you can choose from.
Let us know a bit more about yourself and your business and we'll be able to give you some better direction. I know that many of our community members have been thru this decision making process before, and hopefully will chime in with their experiences. Remember, it's always wisest to speak with your accountant and/or financial adviser before making any big decision.
The first thing you know, what is the difference between LLC & Corporation.
1. No limit on the number of owners
2. Profit and loss are passed through to the owners' individual tax returns
3. No annual meeting
1. May issue shares of stock to attract investors
2. Corporate income splitting may help lower overall tax liability
1. Cannot engage in corporate income splitting to lower tax liability
2. Cannot issue stock
1. Corporation corp tax structure requires double taxation of corporate profits
2. Must hold annual meetings
Hoping these points are helping you for the right decision.
Thank you Roger and Steve (the article link). The information you provided is to the point and precise. As per Steve, it is so important to choose the right path now than take the short approach. I am going to speak with CPA. One more puzzling piece to my activity is that I have two diverse entities. One is related to IT and the other a franchise in food industry. If I form a corporation, is it allowed to operate under the other?
And thank you Rebecca.
Thank you for your valuable comment.
Need more help write me.
Roger: I had asked a question if I have another entity already in business.
Is it possible to anchor this company as under my new company.
1. The New company being formed (C Corp or S Corp)
2. The Other entity already in place (as C Corp)
Can (1) take control of (2) instead of being separate companies?
On Fri, Feb 5, 2016 at 1:25 AM, Roger Dillon <