CooperTax - Cooper International Resources Inc

We have all heard the benefits of forming an S Corporation.  But to be able to decide if an S Corporation is for you, here are some "cons" to it:

One Class of Stock: Choosing an S Corporation status will limit your organization to issuing one class of stock. Not having the ability to issue different classes of stock affords a business less control over the company and limitations on the stock value.

Less Attraction for Outside Investors: Growing your company requires money. If you will need venture capital, the regular corporation structure will be a better choice. Venture capitalists will not want to see the pass through tax setup or a limit of 75 shareholders.

Tax Filing: Unlike a non-corporate business structure, you avoid corporate taxes but will still have to file a tax return every year.

Corporate Meetings: Your status is still a corporation with the requirements of having regular meetings and maintaining company minutes. Consider the added time in operating an S Corporation.

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