At some point during the business start-up process, a business owner must decide how he or she is going to structure the business. There can be many ways to do this, but it is generally done in the form of a corporation or an LLC (limited liability company). Before deciding which is right for you and your business, it's important to examine the pros and cons of each.
There are two types of corporations - S Corporations and C Corporations. Basically, the income of an S corporation is not taxed under federal tax laws, whereas an S corporation is. There are a number of advantages to registering a business as a corporation, which include:
one of the biggest advantages of incorporating involves tax breaks, which is a main reason many business owners decide to incorporate. Some of these tax advantages include: