The decision on which entity to select for your new San Diego business, LLC, C Corporation or S Corporation often begins with how your new company will end. This may seem a bit different than you expect, but my first question of an entrepreneur or new business start-up is “What is your exit strategy for the new business?” In most cases, where we are planning to go will help to determine the path to get there and it’s the same with forming a new company.
If your new business is basically an incorporation of yourself so that you can legally provide services, an LLC may be the best option. Unless you expect to generate an income in excess of $100k / year in which case an S Corporation may provide a better structure for the distribution of income at the lowest tax rates. These decisions are best taken after careful consideration and insight from an experienced business and tax attorney.
If you are starting a new business or need advice on the best entity for your venture I invite you to contact us for a free consultation at 866-631-3470. This is an exciting time in your life, and nothing is more important than laying the foundation for a successful and prosperous business.