When we decided to create D2DInc in 2001, one of the questions we were asked was what type of businses structure did we want to create. We discussed the pros and cons of each type and decided to be a C Corp, espcially since there are two owners. Over the years we've heard from people (especially accountants) that we should have structured our company differently. The Small Business Administration (SBA) just posted a guest blog by Barbara Weltman called "5 Reasons to Be a C Corporation." These reasons mirror why we decided on a C Corpt and think that this blog post is a worthwhile read. The 5 reasons she states and goes into detail on are:
- Use crowdfunding to raise equity capital
- Maximize medical deductions
- Foreign investors
- Using multiple classes of stock
- Minimizing employment taxes
If you are a new business, you may want to consider creating a C Corp, espcially if you're thinking about government contracting as a future line of business. If you aren't a C Corp, but think you can benefit from changing your structure, you should contact a competent and experienced attorney and accountant to guide you through the process.
Read the entire blog post by clicking here.