How can I get out of my C-Corporation?
The better question is should you get out of your C-Corporation. True, C-Corps get double taxed but only if they make money. If your business is a start up and will not make money for a few years and its owners do not have income to offset with losses, it may be better to continue in a C-corp. Similarly, if you contemplate taking on investors in the future, cocooning your losses in the C to afford your future investors the benefit of the losses may make sense. On the other hand, a profitable company with a small ownership group should undertake to convert to a “pass through” tax entity such as a limited liability company, S-Corp, or limited partnership. This can be accomplished a number of ways depending upon the advice of your accountants and lawyers.
For more information on C-Corporations or restructuring, contact info@bisonmgmt.com
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