Ask Annissa: What’s a Better Restoration Business Structure – LLC or Corp.?
I recommend forming a C-Corporation with an S-Election filling most of the time. If you have a lot of assets in your business, then sometimes a C-Corp is best. And if your business has many owners with gross revenue in the millions, a C-Corp can have some tax advantages. If you are new to the industry and just starting out with little assets, then an LLC will give you some tax advantages and provide you with protection in case of a lawsuit or accident. However, a Corporation will provide you with the maximum amount of protection when it comes to your personal assets in the eyes of the IRS if done correctly.
You need to be aware that there can be a double taxation when it comes to a C-Corp. That is why an S-Election or S-Corp is usually the way to go if you are a single owner and grossing under about $2 million annually.