What entity structure is the best, LLC, S Corp, or C Corp?

The choice of entity structure really depends on your long term goals, are you self-funding or raising venture capital, your projected income for the initial few years etc.

There is a major difference in how profits are distributed in each of these entities and also how losses will be handled. Therefore, I would highly recommend discussing this with a CPA or tax professional on tax matters.

This will avoid surprises at the time of tax filing. Also, please note that many CPAs offer this as part of the entity formation consultation.

 

 

** Our response to a question asked on quora


Posted In: Company Formation

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