I am starting a website in the state of NY and I am trying to figure out what is the best option for me: LLC, S or C Corporation.
This website is not predicted to make a lot of money in the beginning. I hope to get to some good answers. Thank you!
2007-05-07 13:30:24 · 3 answers · asked by enescu2001 2 in Business & Finance ➔ Small Business
At the end of your fiscal year, an LLC or a Subchapter S Corp would allow taxation on a flow-through basis. A Subchapter C Corp must pay corporate taxes on all undistributed earnings. Most small businesses have no benefit in being a C Corp. This leaves S Corp and LLC.
Do you plan to have any partners? Now? In the foreseeable future? These answers could help guide your answer.
If you plan to have no partners, but will have employees, you should opt for S Corp because you will have better tax deductions. If no employees and no partners, go for the LLC - it's easier to setup AND has more flexibility if you want to add a partner(s) later.
Good luck!
2007-05-07 14:10:04 · answer #1 · answered by Rob B, of MD 4 · 0⤊ 0⤋
Check with a local accountant. I also agree that you probably won't need a C-corporation. But, LLC's can vary a little from state to state.
2007-05-07 14:52:19 · answer #2 · answered by jdkilp 7 · 0⤊ 0⤋
I'm not sure what you will be selling.
Some places you could check would be the Small Business Administration and SCORE. The links are below.
2007-05-07 13:41:27 · answer #3 · answered by Anonymous · 0⤊ 0⤋