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Law & Legal
  1. How to Qualify for a Medicaid Waiver
  2. Six Reasons Someone May Be Placed Under a Guardianship
  3. What Can Be Included in a Will?
  4. How Much Should You Put as a Down Payment on a House?
  5. 3 Assets That Can Fund a Trust
  6. Why You Should Have a Life Insurance Policy
  7. Is Real Estate a Good Financial Investment?
  8. S-Corp vs. C-Corp
  9. 5 Reasons Someone Might Disinherit a Child
  10. Benefits of a Testamentary Trust
  11. Steps on How to Sign Up for Life Insurance
  12. What is the Estate Administration Process?
  13. What Types of Government Benefits are Available for the Elderly?
  14. What is the Job of an Executor?
  15. What is a Simple Estate Plan?
  16. Why You Should Have a Will
  17. 3 Things You Need to Prepare Your Taxes
  18. Tips for Planning an Estate
  19. What is Electronic Notarization?
  20. Are There Requirements to Qualify for Medicaid Home Care?
  21. 3 Benefits of Tax Planning
  22. 3 Things to Know About Retirement Planning
  23. How Does Mental Illness Impact Your Estate Planning Process?
  24. What is a Lawsuit for Wrongful Death?
  25. What is The Tax Code?
  26. Guide to Become a Tax Advisor
  27. Does My Parents' Divorcing Impact My Inheritance?
  28. Guide to Understand When You Should and Shouldn't Buy a Home
  29. 3 Things a CPA Can Help With
  30. Tips to Maximize Your Tax Refund
  31. 3 Reasons You Should Have a Tax Accountant on Retainer
  32. Do Self-Employed Individuals Get Taxed Differently?
  33. What are Unclaimed Funds?
  34. 4 Things to Know About Surrogate's Court
  35. 3 Reasons Having Advance Directives is Important
  36. What are Estate Taxes?
  37. What is The Estate-Tax Exemption?
  38. Who Has to File Taxes?
  39. 3 Reasons You Should Have a Trust Protector
  40. Understanding Spousal Impoverishment
  41. Who Files Taxes For Businesses?
  42. Should I File My Taxes Using Turbo Tax?
  43. 3 Ways to Protect Against Financial Exploitation
  44. Who Qualifies for a Special Needs Trust?
  45. Guide on How to Write Off Business Expenses When Doing Your Taxes
  46. 3 Things Every Small Business Should Know
  47. Why Updating Your Will is Important
  48. What is the Probate Journey?
  49. What Happens if I Don't File My Taxes?
  50. Tax Accountant vs CPA
S-Corp vs. C-Corp {{ currentPage ? currentPage.title : "" }}

When someone starts a business, there’s often a need to form a legal entity that represents the interests of the business outside of those of the owner. Although you can go into business for yourself as a sole proprietor, doing so can limit your ability to deal with financial institutions and other businesses as a business entity.

Likewise, your tax liability may be personal as a sole proprietor. By forming an S-corp or a C-corp, your liabilities shift away from your finances and toward those of the business entity you create.

What is an S-Corp?

One of the defining characteristics of an S-corp is its structure when it comes to shareholder interaction. S-corp companies can pass along income as well as debts to shareholders as long as these values are taxable.

What is a C-Corp?

Although “what is an S-corp?” is one of the most popular questions asked among budding entrepreneurs, understanding how a C-corp operates is also important. A C-corp is similar to an S-corp in that the business is a separate entity on its own, but with a C-corp, the business is taxed as its entity.

Which Option is Best?

Deciding between an S-corp and a C-corp can come down to what your business goals are and how you plan to expand and grow as a business. If you plan to leverage shareholder investments, an S-corp may be more advantageous. If you plan to maintain majority control over a business, a C-corp may be a better idea. There are also limited liability corporation (LLC) options that don’t involve shareholders but do separate a business’ financial dealings from those of the owner.

To determine which option is right for you, it is recommended to work directly with a tax advisor. These professionals can evaluate your current situation along with your goals to provide you with insight into which option will provide the most benefits. You may also want to work with a business planner or business coach who can help you perform a full cost-benefit analysis of the different options available.

Author Resource:-

Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at elder law blog.

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