C Corporation

Discussion in 'Starting a Lawn Care Business' started by ras166, Feb 12, 2004.

  1. ras166

    ras166 LawnSite Member
    Posts: 1

    I may go into business with a friend of mine, We were told it would be best way to go. Has anyone done this before and what are the ups and downs as far as anyone knows. Will a c corporation protect both of us from getting taken advantage of by the other? We will split all costs and do the labor ourselves. Any help would be greatly appreciated. Thank you in advance and have a good day
     
  2. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    Why not look into a "S" corp instead. Check out www.sba.gov for the advantages and differences of each...
     
  3. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,280

    Get the C corp. out of your mind and go S what’s the difference well its a small little one that I'm sure you would hardly notice. Its called double taxation that’s right if you own a C corp. the corp. has to pay income tax then when you take your remaining profits Wack you now pay again at the personal level this is what democrats call fair play. If you are an S corp. you don’t pay tax at the corp. level all profits and loses are funneled down to the shareholder and you only pay tax at your personal level.
     
  4. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    Well said kelly!
     

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