Scorp or Ccorp in Texas?

[kellyntx]

I am trying to get business credit established and according the the steps on this board I need to set up a corp. I don't know the difference in the two. Any one out there know which one I should do? Any help would be appreciated and thanks in advance. I love these boards and everyone on here are so helpful and friendly. Thanks for making me feel welcomed.

 

Kelly

[JessicaRabbit88]

Kelly-

 

This is really hard for a board to advice on. Really this is better said by an Accountant and your Attorney (which you should have both for your company even if only a pay by use type of deal). A S-Corp and a C-Corp are really two very different ideas. I chose a C-Corp because it keeps the Corporation as it's own seperate entity. There is the double taxation issue of a C-Corp, because you pay taxes on the Corporation profit and also on any Personal Salary you take. Of course with any sort of taxes there are lots of ways to work within the system so that you benefit - but it takes work. A S-Corp you only pay taxes on one part (I can't remember if it is personal income or corp income, but pretty sure it is only personal), but you as the CEO are directly tied to the Corp, it acts less like it's own entity. There are really pluses and minuses of both, and it also depends on what you see doing with your Corp - will it grow? will you have shareholders? do you plan on making a lot of $$ as a business or personal?

 

These are things you should talk about with your Accountant and Lawyer.

 

Jessica

[kellyntx]

Thanks for all the input. We aren't going to do the shareholder thing, it is just gonna be my husband that owns it. It is just a carpentry type business. Don't know what the future holds but most of his customers are homeowners and such that need repairs or remodeling. I will look for an attorny around here though. Thanks again for all your help.

 

 

Kelly