- November 20, 2017
- Choosing the best route to form your company will depend on a few factors:
- company size
- is the company providing a product or a service
- will the company stay domestic or international
- is the company open to investors, buying and selling stocks, or open to shareholders
Companies that choose to form as a corporation are typically larger, publicly traded companies that attract investors who prefer to be taxed less. Companies that take the s corp route tend to be selling a good or a product, with employees or independent contractors. LLCs are appealing to the smaller business where the owner is providing a service such as graphic design or cleaning services. Corporations, s corps and LLCs each present advantages and disadvantages in terms of taxation and federal and state regulations and licenses.