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Ask HN: Best incorporation type for a consulting company?

3 pointsby jfiabout 15 years ago
Is there one type of incorporation that is best used to establish a consulting company? Looks like most startups are recommended to be a DE incorporated C-corp, is there a similar "best of" set up for the consulting company case?<p>Looking to establish a legal entity with tax ID, will likely never take outside investment, profit / loss will vary year to year, and want legal separation between "the consultants" and "the company".<p>Have been advised that an S-corp or LLC would be the way to go, but wanted to hear from the HN community.

1 comment

byoung2about 15 years ago
If you are never going to take outside investment, an LLC would be simpler to set up and maintain. You would have a separate legal entity, limited personal liability for the members, and pass-through taxation. With an S or C corp, there are annual reporting requirements, and you need to elect a board and hold annual meetings.
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