What is the Difference Between C and S?

Well that seems obvious, doesn’t it?  When it comes to forming a corporation that letter can make a world of difference.  Setting up a corporation provides limited personal liability for its owners.  Let’s start with a basic premise.  All corporations dawn as C Corps.  A C Corporation may be converted to an S Corporation by filing IRS Form 2553.

To obtain S Corp status for a certain year, Form 2553 must be filed no later than the 15th day of the third month of the fiscal year.  Of course, it can also be filed during the previous tax year.  There is a big difference in how a C Corp and an S Corp are taxed.  The main reason for choosing an S Corp is to save on taxes.

Is a C Corp right for your burgeoning business?  There are questions that should be asked of a professional CPA.  In Las Vegas, that man is Michael Mathews one of Las Vegas’ leading corporation specialists.  The name says it all.  You can find Michael at www.accountant-lasvegas.com.  Call (702) 240-5237 for a meeting at his 2620 Regatta Drive Suite 102 office.