What do you have planned for 2018? Getting ready to start your own business, or just thinking about it? One of the most critical decisions you will make is choosing the type of entity for your business formation. When you choose to form as a C Corporation, S Corporation, Partnership or LLC, you set the course for legal protections available for the business, how the business will be taxed and future expansion, sale or other possibilities.
There are numerous pros and cons for choosing each type of business entity. While a C Corporation may make sense for some, especially those anticipating rapid growth and a large number of shareholders, a pass-through entity, such as a Partnership or S Corporation, may be more advantageous for those looking to avoid double taxation. In certain cases, an LLC structure may be the best choice, as LLCs can offer more flexibility in how the business is taxed.
The possible changes to the tax code currently being addressed in Congress may further complicate your choice. Let Bumpers & Company help you analyze your business plan and navigate the complexities of appropriate business formation selection.