Tax Guru – Ker$tetter Letter

Q:

Subject: C vs. S Corporation

 

Hi Kerry,

I’m a new (solo) owner of an internet software business (c-corporation in Delaware), and was wondering if you could tell me if it’s more advantageous to be a s-corporation? I’ve read your online article about c vs. s corps and decided to go with the c-corp, but recently a CPA/APC told me that i’d be better off as a s-corporation?

Thanks for your advice,

A:

There are far too many variables involved for me to be able to advise the best entity and jurisdiction to use for your particular situation via this medium.

To work out the best solution for your particular circumstances, you really need to work with a tax pro who can help you set up a strategy that will work for you.

As I mentioned in my article on C vs S corps, too many advisors do rush into S corps without thinking things through as completely as they should.  If your CPA is this way, you should check with another one who can take more of a long range perspective.

Good luck.

Kerry Kerstetter