The major difference between a corporation being a C corporation or an S corporation is that S corporations use the pass-through taxation that partnerships use, while C corporations are subject to double taxation says Van Nuys, California Business Lawyer Steven C. Peck.
If this is an issue you are considering, you should meet with an business attorney and/or a tax advisor so that you can figure out what works best for your situation. Also, you should remember that this decision is not a permanent one, so if you initially elect to set your corporation up as an S corporation, you can always change it over to a C corporation later. In addition, if you are giving serious consideration to an S corporation because of the pass-through taxation, you should also consider setting up your business as an LLC, which also generally has pass-through taxation indicates Los Angeles Buisness Lawyer Steven C. Peck.
Need more information regarding setting up your business, we can hlep you with our free initial consultation, call us toll free at 1.866.999.9085.
