Should I be an S Corp?

he main advantage of electing to be taxed as an S-corp is that the corporation will pass income through the corporation and onto its shareholders. As opposed to a C-corp, which pays taxes at the corporate level, an S-corp itself does not pay taxes, but its shareholders do.

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Advantages of a C Corp

One of the advantages of a C-corp is that it can issue multiple classes of stock. An S-corporation can’t do this, which typically means that founders forego the authorization of preferred stock. If your company is planning to take on investors, this could present a big problem.

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Can I Convert an LLC to a Corporation?

Many entrepreneurs find that their business outgrows its original structure (or perhaps grows in a different direction). One common example is LLCs that approach outside investors for funding: many times, the investors will require that the LLC convert to a Delaware corporation, in large part due to the favorable legal climate in that state.