MBO Partners offers six (6) advantages to independent workers to becoming a C corporation including my favorites: limited liability protection and minimal audit risk. It is easier for independent workers set up as C corporations to do business with their clients because of the reduced risk to the client for misclassification. MBO writes:
1. Limited Liability Protection
Separating personal and corporate liability is one of the most valid reasons to consider a separate business status. With C corporation status, your liability is limited to the percentage of the company you own, and it separates your personal assets from your professional assets in the case your company is ever sued.
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5. Minimal Audit Risk
From both a personal taxes and corporation taxes standpoint, C corporations are less likely to be audited by the IRS compared to sole proprietorships, LLCs, and S corporations. Of course, you should always make sure you’re doing things by the letter of the law and keeping appropriate records so in the event of an audit, you can prove you are operating compliantly.
Read the full story at What is a C Corporation and Why Should Independents Consider Becoming One? | MBO Partners
