Yes there is a better form of business, called S corporation. S
corporation is same like C corporation but there are few
advantages, given in S corporation, these are as following:
- There is not double taxation in S corporation, Income is not
taxed twice at corporate level and personal level.
- Company's directors, shareholders, officers and employees have
limited liability, they are not personally liable for any
obligation of the S corporation.
- Owners report their profit and loss on their individual tax
returns.
- There is once a year tax filing required, in C corporation, it
is quarterly.
- Business continues even after the owners die.
- Company can attract the investors by selling share of stock to
them.
- S corporation provides covered protection and many other
investment opportunities.
C corporation can be converted into S corporation. Firstly your
business has to be structured as C corporation. After sometimes,
you can try to become S corporation if conditions are fulfilled
under IRS.