Deciding which corporate structure is right for you [Video]
Starting a business means making a number of decisions, one of which is choosing the best corporate structure for your company.
Understanding the best legal structure for your venture means considering a variety of factors, such as taxes, personal liability limitations, transferability and investor expectations. There are different advantages and disadvantages to each setup. Some of the most common business structures are Limited Liability Companies (LLCs), S-corporations and C-corporations.
All three of these structures protect company founders against liabilities. Some differences arise in how they are taxed: LLCs receive the tax benefits of partnerships, C-corps often face double taxation on shareholder dividends and corporate profit, while S-corps are taxed on one level and may have tax deductible business expenses.
Choosing the best corporate structure for your business involves careful thought. It also helps to consult experts, like those at CorpCo.