You have 3 options, and all of them probably will be good ideas.
1. You can set up an LLP
(a Limited Liability Partnership ). You set up the LLP if you are trying to set up a professional company. Benefits include a separate legal identity from the owners, typically not much paperwork to fill out, limited liability of partners against the actions of other partners, flexible tax structures, and there is only single taxation as there are no dividends to pay out.
2. S-Corp (Small Corporation
). S corporations
that elect to pass corporate income, losses, deductions and credit through to their shareholders
for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income.
3. P.C. Professional corporations (PCs) and professional limited liability companies (PLLCs) are corporations and limited liability companies organized for the purpose of providing professional services. Additionally, a PC or PLLC must typically be organized to solely provide the services of the licensed practitioners.
I suggest you review your options with a CPA, as either of those options can be useful for you and your business.
Dimitry Alexander Kaplun, Esq.