choice of business entity

S-Corporation

Requires IRS Election.

Incorporation documents

In California, $800 per year franchise tax + 1.5% on Net Income

Employee benefit planning

LLC

In California, $800 per year + Gross revenue fee (If you make more than $250,000/year)

Click here for more info

Partnership

In California, $800 per year

C-Corporation

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

S-Corps, LLC and Partnership are not taxable entities. SO the money that goes in the business is taxed once before owner gets to spend it. But it probably has a higher tax rate

C-Corporations pay taxes as a business entity. So the money that goes in the business is taxed twice before it reaches the investors’ pocket.

Passthrough losses are generally deductible in the year the loss is generated, producing a tax benefit at the individual’s marginal tax rat. So if your LLC looses money, you can deduct some on your own tax return. You get tax benefits right now

For start-ups, if registered as C Corporation, they have to carry forward losses to future years where they reported profit. And then there is some limitations like the 80% of taxable income max deduction limit. SO tax benefits are good for later years

S-Corporation

LLC

Partnership

C-Corporation

Passthrough losses are generally deductible in the year the loss is generated, producing a tax benefit at the individual’s marginal tax rat. So if your LLC looses money, you can deduct some on your own tax return. You get tax benefits right now

For start-ups, if registered as C Corporation, they have to carry forward losses to future years where they reported profit. And then there is some limitations like the 80% of taxable income max deduction limit. SO tax benefits are good for later years

Leave a Reply Cancel reply