Ask HN: Best incorporation type for a consulting company?

[jfi]

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?

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".

Have been advised that an S-corp or LLC would be the way to go, but wanted to hear from the HN community.

[byoung2]

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.

[jfi → byoung2]

Awesome, thank you very much! I can't foresee taking outside investment as this is really more of a shell company for our projects and not something that lends itself to outside investment.