Incorporating Your Business
Incorporating any company involves complex planning and structuring, as the entity you select determines your tax structure and your risk of personal liability. Our business formation attorneys can help you navigate different types of business entities and work with you in the early phases of forming your company to ensure proper growth from the start.
When incorporating your business, you must choose a suitable tax structure:
S Corporation: According to IRS Subchapter S, an S corporation allows a business to pass its taxable income, deductions, and credits to the personal tax returns of individual shareholders. You can only form an S corporation if you have fewer than 100 shareholders, and each shareholder is a U.S. citizen.
C Corporation: A C corporation allows shareholders to be taxed separately from the business entity, resulting in double taxation. C corporations are more flexible than S corporations and have the potential for more extensive growth.
In addition to selecting an appropriate tax structure for your new company, it is essential to establish the right entity to suit your business goals. You can choose from several business entity formations, including:
- Limited liability companies (LLCs)
- Limited liability partnerships (LLPs)
- Limited partnerships (LPs)
- Joint ventures