Entity selection has always been a foundational tax decision. But with shifting global standards like Pillar II, and pending changes to U.S. tax law, the choice between LLC, S-Corp, and C-Corp is more important than ever.
LLCs provide flexibility and pass-through treatment but may not be optimal for international expansion or outside investment. S-Corps offer self-employment tax benefits but restrict ownership. C-Corps face double taxation but may benefit from the 21% flat rate and qualify for Section 1202 small business stock exclusions.
With global minimum tax rules and increased scrutiny of pass-through structures, international operations may favor C-Corp setups for transparency and foreign credit access.
Considerations for your choice:
- Growth plans and funding sources
- Number and nationality of owners
- Long-term exit or acquisition strategies
- Eligibility for tax benefits like QBI or R&D credits
There’s no universal answer. Entity selection must align with your vision, operations, and risk tolerance. A CPA-led review ensures you build your business on a tax-savvy foundation that adapts to change.
