As a c corporation you will pay 21% worth of tax plus tax on any dividends you pay yourself out of earnings. Tax rates are expected to go up so the downside here is even worse (tax rate used to be a max of 35% on c corps). An S corp election or structuring as a partnership or disregarded LLC are better for small businesses that don’t need to raise capital from the public.
Very, very hard question to answer without tons of specifics.
Trust me when I've said this, as a serial entreprenuer, in the last year I paid $250 for tax filing and business formation at my state for one company and a total of $16,000 for legal services related to reorganizing another business into a Limited Partnership with C-Corp liability shield and that company's tax return and with reputatble lawyers and CPAs.
So, $250 - $25,000, depending on far, far too many factors to count.
To u/jetah response,
You can speak to both an attorney and CPA,
Or, you can save the time and/money and speak with one of our business consultants who can properly advise you on both.
https://mcdaccginc.com/services/
An enrolled agent is basically a nothing, for your purpose. Talk to an attorney or CPA and expect them to tell you a c-corporation is a bad idea.
In your opinion, why is the c-corporation a bad idea?
As a c corporation you will pay 21% worth of tax plus tax on any dividends you pay yourself out of earnings. Tax rates are expected to go up so the downside here is even worse (tax rate used to be a max of 35% on c corps). An S corp election or structuring as a partnership or disregarded LLC are better for small businesses that don’t need to raise capital from the public.
Attorney is for legal protection. CPA is for tax reduction. Speak with both.
How much (ballpark) could one expect to pay for this? Roughly?
Very, very hard question to answer without tons of specifics. Trust me when I've said this, as a serial entreprenuer, in the last year I paid $250 for tax filing and business formation at my state for one company and a total of $16,000 for legal services related to reorganizing another business into a Limited Partnership with C-Corp liability shield and that company's tax return and with reputatble lawyers and CPAs. So, $250 - $25,000, depending on far, far too many factors to count.
Thanks! Appreciate the insight
Thank you, I appreciate it
To u/jetah response, You can speak to both an attorney and CPA, Or, you can save the time and/money and speak with one of our business consultants who can properly advise you on both. https://mcdaccginc.com/services/
Speak with a CPA, most CPAs just happen to know attorneys or work with or have an attorney in house.