Electing S Corporation status can offer significant tax benefits for small businesses by enabling pass-through taxation, avoiding double taxation on corporate income. S Corps provide tax savings on self-employment income and allow deductible business expenses. However, they come with strict eligibility requirements, administrative complexities, and scrutiny over reasonable compensation.

A holding company is a type of business entity that owns and controls the shares or membership interests of other Corporations or LLCs, respectively. Unlike business entities that focus on sale of goods or providing services, a holding company’s primary function is to hold a significant portion of the ownership interests in other businesses. This allows the holding company to influence or control the operations and policies of these subsidiary companies, which can can have several benefits...

Limited Liability Companies (LLCs), C-Corporations, S-Corporations, and Partnerships each have unique characteristics and selecting the right business entity in your situation is a critical decision that can significantly impact your liability protection, taxation, management, and potential for outside investment(s). Understanding the similarities and differences among these entities, is essential for making informed choices aligned with your business objectives and preferences.