Q: Would forming an LLC or Corporation be better for a person who wants to start their own General Contracting Company?
I want to become a first time business owner and was wondering which would suite me the best in terms of taxes, protection, and future costs? I am planning to elect to file taxes under S-Corp subsection for either of these business entities that I am willing to go with.
A: Dear General Contractor with "entity formation" question: You asked which type of entity formation would be the best in the state of California for a company intending to operate as a licensed General Contractor under the auspices of the Contractors State License board ("CSLB"). The CSLB does not "acknowledge" the use of an LLC in holding a contractors license. Therefore your election to Bec one an S-Corp would be permissible. JIM GREER is an attorney licensed to practice in CA and CO and has specialized in construction, business, and real estate matters for the past 35 years; nothing herein shall be construed as the offering of legal advice insofar as Mr. Greer is not in an attorney-client capacity with the inquiring party. 858.481.9006
A: The answer to your question should be developed in an initial free consultation by video call or telephone call. The short answer is ... it depends" ... upon your preferred management structure, the operations plan, your succession plan ... and how well you get along with others ...
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