Discuss Home · Bootstrapped Podcast · Scribbleton Personal Wiki · HelpSpot Customer Service Software · Thermostat NPS

Company Entity Type


#1

I am looking to start a company charging a monthly service fee to a small SaaS app that I have developed but I am unsure of what type of company entity I should form. Currently there is just me who is building this app, but I am at a very early stage and there is a possibility of me bringing in a co-founder to help build out my idea. With that said, does anyone have any advice on whether I should form an LLC, S-Corp or C-Corp?

It is my understanding that a C-Corp creates double taxation on owner dividends, but S-Corp and LLCs do not, so what are the pros and cons between an S-Corp and LLC?

Thanks.


#2

I have a single-person LLC which has worked fine so far, because the taxes are pass-through. If you involve other people, you probably want to consult a lawyer to make sure you have a good set of rules in place.