Big News: FounderDating is joining OneVest to build the largest community for entrepreneurs. Details here
Latest Notifications
You have no recent recommendations.
Name
Title
 
MiniBio
FOLLOW
Title
 Followers
FOLLOW TOPIC

Question goes here

1,300 Followers

  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur

What are the key reasons/benefits for choosing to file for S Corp status?

Not sure of near term benefit and my understanding is that you can elect this status again when you file your first years' return. Thoughts?

3 Replies

Lilia Tovbin
1
0
Lilia Tovbin Entrepreneur
Co-founder at BigMailer.io
The immediate benefit is that you can have business losses from your early years flow through your personal income (deducted from your taxable income). S corp status is practical in the early stages, especially for small teams of co-founders.
Gwan Yip
1
0
Gwan Yip Entrepreneur
Director at LOR LLC
I was actually just reading this earlier which was usefulhttp://mashable.com/2012/02/17/small-business-incporporation/
Reem K. Yared
0
0
Reem K. Yared Entrepreneur
CEO at Help Around Town, inc.
Be careful, the key points come at the end of Gwan's article:
- If you're going to raise funding, VCs will want a C corp. It's easy to go from S-corp to C-corp but complicated to go from LLC to C
- You only have a short window to make the S election after first incorporating as a C corp: "Take note that the deadline to elect S Corp treatment is March 15 for existing companies (or 75 days from the day your company is formed)." from the article above, though I'm not sure in which circumstances the March 15 deadline applies.
- Otherwise, as Lilia pointed out, being an S corp (or LLC) will allow you to deduct the losses from your start-up.
Join FounderDating to participate in the discussion
Nothing gets posted to LinkedIn and your information will not be shared.

Just a few more details please.

DO: Start a discussion, share a resource, or ask a question related to entrepreneurship.
DON'T: Post about prohibited topics such as recruiting, cofounder wanted, check out my product
or feedback on the FD site (you can send this to us directly info@founderdating.com).
See the Community Code of Conduct for more details.

Title

Give your question or discussion topic a great title, make it catchy and succinct.

Details

Make sure what you're about to say is specific and relevant - you'll get better responses.

Topics

Tag your discussion so you get more relevant responses.

Question goes here

1,300 Followers

  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
Know someone who should answer this question? Enter their email below
Stay current and follow these discussion topics?