Most Flexible Business Entity?
Subject: Tax Guru-Ker$tetter Letter: Setting Up CorpKerry,Since an LLC can choose to be taxed as a Corp and is a simpler form of organization that a C corp, doesn't the LLC provide the most flexibility?Blog: Tax Guru-Ker$tetter Letter
Post: Setting Up Corp
Choosing the method of taxation is only one of many aspects to be considered when deciding on the appropriate business entity to work with.
It is also something that is generally only available for the first year of operation. If you were under the impression that you could switch back and forth each year, that is not how it works. Changing the classification has some very messy requirements, often resulting in immediate taxation of certain types of gains; so it is not to be done without the careful consideration of competent professional advisors.