My last article discussed some of
the differences between sole proprietorships,
partnerships, and S
and C corporations (see Legal,
3/92). Since more and more small
contractors are incorporating, it
makes sense to take a closer look
at the differences between S and
C corporate forms. Most of these
have to do with taxes, though
some have to do with the structure
of the corporation.
If you're choosing or changing
corporate forms, bear in mind
that tax laws can and do change,
and there can be costs involved
with changing your corporate status
or liquidating the corporation
in response to tax changes. Consider
carefully where your
company will go in the next few
years, and be sure to consult an
accountant or attorney