Posted On Nov 10, 2015
In an article published on Nov. 9, 2015, Mark B. Goddard provides advice to entrepreneurs starting a business. Goddard explains the difference between an LLC, an S corporation and a C corporation. “One advantage of the LLC is the ability to choose how the company’s income will be taxed,” Goddard notes. “Another advantage of an LLC is the ability to decide how profits are to be distributed.” He goes on to describe the S corporation as a hybrid option where a manager-shareholder can take a salary, plus additional income in dividends and it is limited to 100 individual shareholders that must be U.S. citizens. The C corporation is the option for potential business owners who are “thinking big.” “The C corporation is the ‘traditional’ incorporated business, and it has the strictest formalities,” Goddard notes. “If you see a public offering in your future, a C corporation will place you in the best position to satisfy the reporting requirements of the Securities and Exchange Commission.” You may view the full article here.