LLC vs C Corp vs S Corp

by a searcher from St. Lawrence University

1 year ago

I've been looking into QSBS benefits of C Corps and curious if anyone has and thoughts or first hand experience. On the surface, it seems like the advantages of tax free proceeds of 10x cost basis or $10M after 5 years is attractive. 

One downside is you can only pay yourself a "reasonable salary" and any distributions beyond will be double taxed (company and personally) 

Any thoughts on QSBS, experience with "reasonable salary", or other ownership structures and their advantages would be appreciated!

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2 comments

searcher from Massachusetts Institute of Technology - MIT Sloan School of Management

Call me crazy, but last time I looked, the max tax corporate tax rate plus dividend tax rate is on par with the max individual tax rate, no?

7 months ago | like reply | 1 like

professional from Howard University

Hi Pat, happy to answer any questions you may have here. Could you give me more context on what you are trying to accomplish? Feel free to message me.

1 year ago | like reply | 0 likes

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