Corporations

Top three reasons: Tax. Tax. Tax. Which is why they were created to begin with back in the day (1958), to encourage small business creation in the U.S. An S Corporation has a “single layer” of tax, i.e., unlike C Corporations (which is what all corporations formed in the United States are unless they make [...]

It’s complicated. With a (currently) flat tax rate of 21%, many businesses are considering being a C Corporation. You may want to favor/explore being a C Corporation in these circumstances: You’re exploring providing your employees with fringe benefits; you’re planning on having your business retain its earnings for future growth; you’re considering venture capital; you [...]

It’s Opposite Day! Take a look at this FAQ: When should I use a C Corporation for my business and if none of those apply, then you should probably steer away from a C Corporation [LINK TO What is a C corporation] due to the downsides of double taxation, where the income is taxed on [...]

In addition to the expenses you’ll incur for forming your corporation or LLC, there will be a number of expenses you should take into consideration when weighing the pros and cons of operating from an entity. Here’s a short list: an additional tax return (CPA fees), $800 minimum to the California Franchise Tax Board (regardless of [...]