One question that hits every business owner’s mind while starting a business is whether to go for S corporation or C Corporation? The following article explains the points of differences and the similarities between both, whereas the choice for the same depends on the goals of the business.
Both structures get their names from the parts of the Internal Revenue Code (IRC) under which they are taxed. C Corporations and S Corporations are taxed under Subchapter C and Subchapter S, respectively. There are a few more similarities which are listed below –
The choice for the type of entity plays a considerable role when it comes to the matter of taxes, financing, and other strategies. The decision of choosing the best type for your company depends on the needs and the goals of the business. The companies can decide by considering all the factors of both types.