Should I form an LLC an S-Corp or a C-Corp to start a cleaning business in NY?

Given the restrictions that come along with an S-Corp, a C-Corp offers a bit more flexibility when starting a business. A C-Corp is a standard corporation whereas an S-Corp has a special tax status assigned to it by the IRS. Both types of corporations offer limited liability protection, have similar structures, corporate formalities, and both are considered separate entities. However, despite their similarities, they have distinct differences.

C-Corps are separate taxable entities, and are subject to double taxation. Conversely, S-Corps are pass through entities, and pay no corporate income tax as a result as taxes are paid at the individual level. S-Corp restrictions include no more than 100 shareholders and they must be U.S. citizens or residents. They can also not be owned by other corporations, LLCs, or partnerships. Finally, S-Corps can only have one class of stock while a C-Corporation can have multiple classes.

So, if you’re looking to grow your cleaning business exponentially and anticipate raising money then a C-Corp is the right move. If you’re interested in incorporating your business then consider using LawTrades. We’re a legal platform for entrepreneurs looking for a reliable and affordable way to hire and use an attorney for their legal stuff. We offer free consultations & a money-back guarantee. Hope this helps!

[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]