If you have been in business for a while, you have probably heard about the importance of forming the right structure around your it. The ideal business-structure protects your business against the unexpected and helps you grow it and bring on new partners. There are many business-structures to choose from, but some come more legal requirements while others are less flexible. Finding the right balance is the key to growing your venture without too much hassle.
There are many business structures to choose from (depending on your state). You can choose LLC, C-corporation, S-corporation, and LLP as your venture’s structure. All these have their advantages and disadvantages but C-level corporation is the right choice for established businesses that want to move to the next level.
C-level corporations come with many benefits. A C-corporation allows you to protect your personal assets from creditors. Business owners know that no matter how well your business is doing, things can change very quickly. You’d be doing yourself a disservice by not protecting your personal assets just in case. You also receive a lot of tax benefits from C-corporations. You can distribute corporate profits among owners and company and reduce your self-employment tax significantly. In addition, corporations do tend to get audited less than sole-proprietor businesses. That’s one of those headaches that you better avoid.
Forming a company is not for everyone. You are going to spend money to form your company and keep it compliant. You will have to file annual reports (check your state’s laws) and keep a record of your meeting minutes. Overall, there is more paperwork involved, and you will have to spend more money, which may not be suitable for everyone.
Incorporating your business is a big decision. You want to form a business that is highly flexible and allows you to reach your goals. If you are an established business looking to expand and even go public, you should “C-corporate” your business to take your venture to the next level.
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