I formed a C Corp anticipating funding but things didn't happen. Now it has become a huge liability. But the product is on track and the revenue will be small. I somehow plan to bootstrap. Should I convert C to S Corp or any other advice if you ever had dealt with such a situation.
In my experience, this is mostly a taxation question. Just do the math for both options and see which way you’d pay less taxes.
It used to be that an S Corp would be more efficent up until your total personal income/wages from all sources hits $120k a year or so. Only after that, a C Corp becomes more efficient.
* This is mostly about wages but if you also pay yourself dividends, you should factor them in too
It used to be that an S Corp would be more efficent up until your total personal income/wages from all sources hits $120k a year or so. Only after that, a C Corp becomes more efficient.
* This is mostly about wages but if you also pay yourself dividends, you should factor them in too