Avoiding Double Taxation
Mashable has posted a helpful article on How to Structure Your Startup to Avoid Double Taxation.
From the article:
Creating a legal entity for your startup will establish much-needed separation between you and your business. Shielding your personal assets is the first and foremost reason to think about incorporating.
But let’s face it. When it comes down to choosing a business structure, small business owners are typically concerned about one thing: taxes.
There are a whole host of reasons to incorporate as a C Corporation. For example, the C Corp is the preferred structure if you intend on seeking VC funding or taking the company public. But forming a C Corp involves more paperwork, legal fine print and potential double taxation.
