C Corporations
Benefits:
100% deductible health insurance
Corporation continues even if a stock holder dies or sells out
Easier to raise capital in a C Corporation than in a sole proprietorship or partnership
No limit to number of shareholders
Disadvantages:
Double Taxation
Takes more time and effort to maintain
Bigger risk in starting cost than a sole proprietorship or partnership
S Corporations
Benefits:
Easier to raise capital in a S Corporation than in a sole proprietorship or partnership
Protection from limited personal liabilty with the benefit of not having to pay corporate taxes
Saves corprate taxes
Disadvantages:
Bigger risk in starting cost than a sole proprietorship or partnership
Numerous regulations and requirements must be met
Owner needs to be a U.S citizen or permanent residents
Limited Liability Company (LLC)
Benefits:
Exists as a seperate intity
Can chose to be taxed as a partnership or as a corporation
No Requirements or formalaties must be met
Disadvantages:
Must have at least two people to be treated as a partnership
Bigger risk in starting cost than a sole proprietorship or partnership
Tough to change from an LLC to an S Corporation or C Corporation
