I am getting ready to incorporate and was thinking of s corp or c corp getting mixed reviews from accountants and attourneys. I was wondering what you people have done. It will be just me in the business for now. Any help is appreciated.
Seems to me that the only reason to incorporate would be to avoid liability. Looking at your profile I noticed that you were still young, and have 0 years experience. Why wouldn't you start as a sole proprietor and if you need to incorporate later you can. Being a SP is a lot simpler on the tax end of things.
Well if thats your decision then go for it but forget about a C corp. thats not what you want nor need. The accountant should have explained that C corps is for large business typically over 10 million in sales. The C corp. is for publicly traded companies the C corp. does not save you on taxes it actually gets you a double tax hit. You pay taxes as a business on all profits then when you take them out you get to pay on them all over again on the personal level. So dont even think about C corp. I happen to love my S corp. and all loses or profits filter down to me on a personal level so I only need to pay taxes once atm I have just over 50 k in deductions being carried over to next year tell me that isnt sweet making your next 50 k tax free.
had an scorp a few yrs back - puter stuff. one other benefits is profit dispersals. if i remember correctly u only pay that tax in franchise tax in may. so you pay urself a low salary, and then a 1/4ly dividend. of course i do recall being told to be careful about that and not to lopside it too much or u will draw unwanted attention to it.
Your choice should be between an S-Corp and LLC. In most cases, service oriented business that have a small number of employees are better off as an S-Corp. They are very similar in operation, with the only difference being how profits of the company are taxed among the shareholders.
Find an accountant to help you decide, or just do it all yourself as I did. You can do it without hiring an accountant or lawyer.