Marcie and I are considering applying to the IRS for “S” type corporation status for our teeny little family business. If anyone has specific experience with this type of corporation, I would appreciate hearing it, either pro or con.
Thanks for any input.
I guess the first question would be: Why are you incorporating? There are different reasons for incorporating, and different reasons for choosing an S or C corporation, or perhaps an LLC. It really depends on what legal and tax advantages of each entity would suit you best.
The little company I work for (3 FT employees, a few other PT/seasonal folks) started out as an S-type corporation in large part because NJ (the state of incorporation) at the time didn’t allow LLCs to have just one member (my boss, the founder). Once that rule was changed, his accountant changed the company over to an LLC.
Some info that you might find helpful: