“S” Corp

A less well-known type of corporation is the “S” corporation. The businesses share the corporate classics of shareholder ownership and management by a board of directors. They also provide the same shields from financial and legal liability that other entities can provide. What’s more, an “S” corporation avoids the worrisome problem of double taxation, at least when it comes to annual operations.

If you think an “S” corporation seems like the best of both worlds, you’re not alone. But deciding which type of entity is right for you requires digging beneath the surface. In exchange for avoiding the most common form of double taxation, “S” corporations must submit to some restrictions on ownership, share flexibility, and business type that have been set forth by the IRS. Whether you should view these restrictions as deal-breakers depends on a variety of factors.

At Garrett, Walker & Aycoth, we can explain those factors, allowing you to consider your vision for your business both now and in the future. By matching your strengths, your market, and your plans for growth in all aspects of your business, we can help you make an educated decision about whether an “S” corporation is right for you. Call us today at (336) 379-0539 or contact us to schedule an in-depth consultation.


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