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LLC or S or C?

This morning, I wanted to make some progress on deciding on what type of incorporation I want to pursue for my new business. I spent time looking at

  • Attorney, Stephen Fishman. Working for Yourself: Law & Taxes for Independent Contractors, Freelancers & Consultants. 7th ed. NOLO, 2008.
  • Weiss, Alan. Getting started in consulting. Getting started in. Hoboken, N.J.: J. Wiley, 2004.
  • Pakroo, Peri. Small Business Start-Up Kit for California. 7th ed. NOLO, 2008.

My current conclusion: yes, incorporate, but I will need to consult an accountant  and an attorney to figure out which form to establish.  Factors that will play a role:

  • which is the best for a small business starting out — I don't want too much overhead
  • we need to be able to move between CA and PA
  • we need a way to handle health insurance issues
  • we need room for growth
  • how does business insurance figure in the mix

It's worth studying Fishman more closely to understand the tax differences between LLC, S, and C.

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