So when choosing whether or not you’re going to be an S corporation or a C corporation, we always advise clients that they also need to speak with their CPAs or their tax accountants to figure out what’s best for their particular structure. Just because you read something online or you have a friend who has an S Corporation versus a C doesn’t necessarily mean that’s the appropriate structure for you. And we very much consider it a joint decision making process between us from a legal structure and liability perspective, aw well as a CPA or a tax advisor.

Making the decision as to if you’re going to be an S Corporation or a C Corporation is usually done at the formation stage. So you actually need to make the election within the first 75 days of formation of the corporation. There are late elections, but we always recommend that people make the timely election. And that decision will be made at the time we’re first having the conversation and it’s usually the individual founders. That’s one of the decision points as to when they choose the type of entity. They’ll ask you know, are we going to be an S Corporation or a C Corporation? At that point we will recommend they have a conversation with us, conversation with their accountants, circle back, and then make a decision.