When starting a business, there are many different business entities to choose from, and selecting the right type is vital to your business’s success. S-Corporations and LLCs differ in many ways, from management structure to taxes. For example, S-corporation’s tax status eliminates double taxation, but it lacks the flexibility an LLC has in allocating income to the owners. An LLC can have an unlimited number of members, while an S-Corp is limited to 100 shareholders.
Your business entity choice will affect your management structure, business taxes, and ability to form subsidiaries and issue stock. For help choosing the best entity for your business, feel free to contact us!