Business Entity Type Consultation

Build your business on the right foundation.

Fred Lundin CPA offers specialized Business Entity Type Consultation for entrepreneurs and small business owners who need to move beyond the "default" settings. 

Choosing between a Sole Proprietorship, LLC, S-Corp, or C-Corp is more than just a legal checkbox—it is a financial strategy that impacts your taxes, liability, and ability to raise capital for years to come. We don't just file forms; we model the future.

In our virtual consultation sessions, we review your business model, projected income, and risk profile to determine the optimal structure for you. We explain the complex tax implications—such as the "Self-Employment Tax" vs. "Reasonable Salary" dilemma—in plain English, using real-time screen sharing to show you the potential tax savings of each option. 

Whether you are launching a new venture or wondering if it’s time to convert your LLC to an S-Corp, we provide the expert roadmap you need to incorporate with confidence.

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Frequently Asked Questions (FAQ)

Why can't I just form an LLC online using a cheap legal website? 

You certainly can, but those sites only handle the paperwork, not the strategy. They cannot tell you if an LLC is actually the most tax-efficient structure for your specific income level, nor can they advise you on the timing of an S-Corp election. We ensure the structure you choose aligns with your long-term financial goals, potentially saving you thousands in taxes that a generic form would miss.

When is the right time to switch from an LLC to an S-Corp? 

This is one of the most common questions we answer. Generally, once your business creates enough profit to pay you a "reasonable salary" and still have significant profit left over, an S-Corp can save you a substantial amount in Self-Employment taxes. We perform a break-even analysis to tell you exactly when the tax savings outweigh the additional administrative costs of an S-Corp.

Do you file the legal paperwork for me? 

We focus on the tax and financial strategy. While we can assist with the IRS filings (like the S-Corp Election Form 2553) and obtaining your EIN, we typically partner with your business attorney or guide you to the correct state portals to file the Articles of Organization. This ensures your legal liability protection is established correctly while we handle the tax side.

Does my entity type affect my chances of getting a loan? 

Yes. Banks often view formal entities like Corporations and LLCs as more stable and credible than Sole Proprietorships. Furthermore, keeping your business finances strictly separate from your personal funds (which is required for these entities) creates the clean financial records that lenders require for approval.

Can I change my entity type later if I make a mistake? 

Yes, but it can be complicated and sometimes costly. Converting a C-Corp to an S-Corp, for example, has strict rules and potential "built-in gains" taxes. It is always cheaper and easier to start with the correct structure than to untangle a mismatched one later.