C Corp A C Corporation is a taxable entity; it is taxed solely on its income rather than the owner being taxed.
Therefore, you are forced to sell your house and auction your belongings to cover the debt.
As a result, there's just one level of federal tax to pay. However, it can be difficult to procure outside funding.
Any partner can commit the business to obligations — Any partner is considered an agent for the partnership and can make decisions which might commit the partnership beyond realistic expectations.
An S corporation election should not be made without the advice and assistance of a tax professional, since it is a very complex and technical area of the tax law.
Then assess your business to understand which option seems to be most suitable for it. With sole proprietorship, one person is responsible for all of a company's profits and debts.
LLCs offer the corporate benefits of limited liability, while retaining the flexible flow-through tax treatment of a partnership.
Kalish has also been involved with a number of other start-up businesses, both as an owner and in various management positions.