Posted by Ed Copp (OH) on February 24, 2001 at 18:25:18:
You can use whichever kind of corporation that you desire. It is important to learn a few things about corporations before you decide. You should be able to find a book in the library that will explain the differences.
If I were going to do business with a family type operation I would most likely use an “s” corp. because the bookeeping is simpler and flows through to the individuals regular 1040 tax return.
The “c” has to file it’s own tax return, because it is a seperate entity. Both the “s” and the “c” start out as a “c” corp. (you must elect to change from a “c” to an “s”). As I underastand it the IRS also looks at a LLC as a non entity (an extension of the person) for tax purposes, allowing the profits and /or losses to flow to the form 1040 of the individual.
When acting on behalf of the corp. you always sign your own name, and the office that you hold. It is very important to learn how to do all the procedures correctly before you start (the corp.).
An option here would be to do a deal or two to find out how things work, in your own name; and then decide which business entity is correct for you.