Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

C Corp or LLC?

Asked by: Robert Adamo - 25 October, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 I am opening a new business in Texas and trying to decide between a C Corp.. and LLC...it will be a sign related business with est. revenues of 700K and profit of 80K-250K...which do you recommend?
Answered by: Ray Albert - 26 October, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/194.jpg-630c771619e92bede7e6f696b56767b9 Robert,

An LLC is a pass through entity, which means the profits of the company are not taxed, and are passed through to the owners' personal income, where you would then pay personal state and federal income taxes. A C-Corporation will first pay corporate income tax on it's profits, and then the owners would pay themselves a dividend, where you would of course pay personal state and federal income taxes.

For a side by side comparison of the main differences between the two entity types, please read our research article titled 'LLC vs Corporation'.

It's not a bad idea for you to consult a CPA, since each case is unique and you want to involve the person who would do bookkeeping and tax preparation in the discussion on what type of entity this business would be. Just keep in mind, LLC is a flexible entity and you can choose how it will be taxed (as partnership, S-Corp, or C-Corp).

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment