S-Corporations are a popular business structure but not always a perfect fit.
Pros:
- Pass-through taxation (no double taxation)
- Limited liability protection for owners
- Potential tax savings on self-employment taxes
Cons:
- Stricter operational requirements than LLCs
- Limitations on ownership (maximum 100 shareholders)
- More complex tax filings
We are often asked what type of entity should be used for a business structure.
While S-Corporations offer significant benefits, it’s essential to consider your specific business needs and long-term goals.
Are you wondering if an S-Corporation is the right choice for your Texas business?
Give us a call and we can chat it out.