Guidance on the correct types of entities and tools for managing those entities at your fingertips.
Knowing which type of entity structure you need is winning half the battle.
Generally, a "C" Corporation structure is better for larger businesses. This is particularly true if they intend to publicly trade shares, through having an Initial Public Offering, or IPO. A "C" Corporation is much more attractive to potential investors, including venture capitalists and shareholders because it allows wider ownership of the corporation.
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An "S" Corp, also known as the subchapter or small business corporation, is a tax code that was enacted into law by Congress in 1958. The "S" Corp was created to encourage and support the creation of small and family businesses, while eliminating the double taxation that conventional corporations were subjected to.
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In the United States, a limited liability company is a business entity type that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation, creating the best of both worlds for business owners. LLCs have rapidly become one of the most popular business structures for new and small businesses, largely because they are considered to be simpler and more flexible than a corporation.
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