S-Corp vs C-Corp – Which Business Structure Is Right For You? (What’s The Difference?) [Video]

S-Corp vs C-Corp – Which Business Structure Is Right For You? (What’s The Difference?). In this comparison video I will talk about S-Corp vs C-Corp.

So, the main difference between them is the method of taxation.
When a C-corp makes money, the government taxes its profits. The company also shares some of these profits with owners, who get taxed by the government again. This double taxation happens as long as the company is profitable and owners cannot escape this added expense.
The government does not tax the income of S-corps. When the owners receive a share of the company profits, these will be taxed accordingly. In some situations, if the company experiences losses, this could offset the individual’s other revenues. S-corp is better than C-corp for its tax savings.

Ownership restrictions
A C-corp can have many shareholders. They do not have to be American and can hold different types of shares. In contrast, an S-corp is limited to 100 American citizen shareholders with only one type of share. C-corp is preferred due to fewer limitations on ownership.

Formation
Creating a C-corp is simple. You only need the company’s articles of incorporation. After filing these with the secretary of state, your business officially becomes a corporation. The same applies to an S-corp. However, to enjoy the tax benefits of an S-corp, the entity will need to make additional submissions, for example, to the IRS. C-corp is easier to form compared to S-corp.

But do they have any similarities?
Yes. First, both companies must undergo incorporation processes, such as working with a registered agent and filing articles of incorporation. Both must comply with certain laws, such as conducting meetings and the issuance of stock. Lastly, in both cases, shareholders enjoy limited liability for the entity’s obligations.

To sum up, which is better – S-corp and C-corp?
What I find most attractive about S-corp is the tax savings. Having to pay taxes on your income is not something any person enjoys. So, any chance to reduce this responsibility is a great source of relief.
C-corp has the benefit of minimal restrictions and requirements for its formation. Finding funds to support your business is not easy. Thus, a company will have an easier time raising funds if there are less restrictions on its ownership. Even though C-corp is disadvantaged due to double taxation, I choose it as the overall winner as it is easier to form and raise funds for the business.

If you found this tutorial helpful, kindly show your support by giving it a thumbs up and sharing your thoughts in the comments below. Your feedback is greatly appreciated. Thank you!

►Disclaimer◄
This channel DOES NOT promote or encourages any illegal or unethical activities and all content provided by this channel is meant for EDUCATIONAL PURPOSES only.

This video is solely intended for educational purposes only. The information presented has been thoroughly researched and sourced from reputable outlets, including, but not limited to, Google, social media platforms, and online forums. Our team has meticulously crafted original content centered around this topic, utilizing a comprehensive approach to ensure accuracy and reliability.

The Savvy Professor is a YouTube channel that provides up-to-date information on various topics, ranging from finance ,technology ,gaming, how-to tutorials, product reviews, and roundups. Our channel is dedicated to delivering informative, original, and unbiased content that viewers can appreciate.

I believe all content used falls under the remits of Fair Use, but if any content owners would like to dispute this I will not hesitate to immediately remove said content. It is not my intention to in any way infringe on their content ownership. If you happen to find your art or images in the video please let me know and I will be glad to credit you / Take down the content. Business e-mail: juicewave23 { @ } gmail.com

……………………………
Content Credit :
The visual content featured in this video has been obtained from reputable sources, including Google Images, official websites, and stock footage clips.

Furthermore, the information presented in this video has been derived from various reliable data sources, such as Wikipedia, Google search, Forums and other social media platforms.

The video has been professionally edited using a combination of Adobe Premiere and Adobe After Effects, to create original content thats is engaging for our viewers.

……………………………….
FTC Disclosure: The Savvy Professor is a participant of Amazon Affiliate Program. Provided Amazon product links are linked to my Amazon Affiliate account & I receive small commissions from every successful purchase made using these links.