Tag Archives: “choice of entity”

16 Reasons To Make Your Startup A C-Corp

My list of reasons to start as a C corporation. Continue reading

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IRS Confirms That LLCs That Check The Box Can Immediately Become S Corporations

“When X, an entity classified as a partnership for federal tax purposes, elects under § 301.7701-3(c)(1)(i) to be classified as an association for federal tax purposes, the following steps are deemed to occur: X contributes all of its assets and liabilities to the … Continue reading

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S Corporation or LLC?

For founders who want a pass through company for tax purposes, which is better–an S corporation or a limited liability company? Continue reading

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Can An S Corporation Have Voting and Non-Voting Stock?

S corporations may only have one class of stock.  However, “[d]ifferences in voting rights among shares of stock of a corporation are disregarded in determining whether a corporation has more than one class of stock.”   Thus, an S corporation … Continue reading

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LLCs as S Corporations? Why?

I have heard CPAs on more than one occasion recommend a client form a state law limited liability company, check the box to be taxed for federal income tax purposes as a corporation, and then make an S election.  The reason–according to … Continue reading

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