[Davincinc]

Whats the pros and cons of being a (X)Corp type) In this industry, this is just a fraction of a fraction of what is out their but points I chose because i am trying to figure how these lenders and MCA providers choose their best filing status, AND WHAT STATE? I have heard Wyoming is the best place but Delaware has the most seasoned laws which makes for better and smoother legal claims.


Seeking more info on perspectives to have in this space. Keep in mind this would be for lending status not just brokerage houses.

C-corp -
-Double taxation
- Itemization's can be difficult but more appealing then the others below
- currently 18% tax due to new tax relief via trump
- Harder to litigation against (so ive been told)

S-corp
-pass through income
-If the S corporation pays wages to employees, then the company is responsible for withholding federal income tax as well as Social Security and Medicare taxes from their paychecks
-S-corporations are pass-through entities. That is, the corporation itself is not subject to federal income tax.
-All owners of S-corporations need to pay federal individual income taxes (top marginal rate of 39.6), state and local income taxes (from 0 percent to 13.3 percent), and are hit with the Pease limitation on itemized deductions, which adds an additional 1.18 percent marginal tax rate

LLC- (this seems to dominate this space and I do not understand why? Is it more for fly by night lenders/brokers
-LLCs are not taxed as a separate business entity. ... LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership. The business does not pay federal income taxes, although some states do apply an annual tax to LLCs

ps: not looking for just go talk to a tax specialist - I would like the input of our fellow funders to have an informed perspective when I engage my attorney and CPA

Ruff overview of funding strategy,
monthly funding - 6-8.7m per month
34 state limited
employees on payroll 5
ISO's - 18 paid via upsell of MCA

[Chambo]

Whats the pros and cons of being a (X)Corp type) In this industry, this is just a fraction of a fraction of what is out their but points I chose because i am trying to figure how these lenders and MCA providers choose their best filing status, AND WHAT STATE? I have heard Wyoming is the best place but Delaware has the most seasoned laws which makes for better and smoother legal claims.


Seeking more info on perspectives to have in this space. Keep in mind this would be for lending status not just brokerage houses.

C-corp -
-Double taxation
- Itemization's can be difficult but more appealing then the others below
- currently 18% tax due to new tax relief via trump
- Harder to litigation against (so ive been told)

S-corp
-pass through income
-If the S corporation pays wages to employees, then the company is responsible for withholding federal income tax as well as Social Security and Medicare taxes from their paychecks
-S-corporations are pass-through entities. That is, the corporation itself is not subject to federal income tax.
-All owners of S-corporations need to pay federal individual income taxes (top marginal rate of 39.6), state and local income taxes (from 0 percent to 13.3 percent), and are hit with the Pease limitation on itemized deductions, which adds an additional 1.18 percent marginal tax rate

LLC- (this seems to dominate this space and I do not understand why? Is it more for fly by night lenders/brokers
-LLCs are not taxed as a separate business entity. ... LLC members report profits and losses on their personal federal tax returns, just like the owners of a partnership. The business does not pay federal income taxes, although some states do apply an annual tax to LLCs

ps: not looking for just go talk to a tax specialist - I would like the input of our fellow funders to have an informed perspective when I engage my attorney and CPA

Ruff overview of funding strategy,
monthly funding - 6-8.7m per month
34 state limited
employees on payroll 5
ISO's - 18 paid via upsell of MCA

S Corp cannot take on corporate investors.

LLC -- is better if there are partners/multiple entities involved. You are each responsible for your percentage, no more, no less