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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41221
Experience:  Run my own successful business/contract law practice.
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what kind of business entity would you recommend, if I want

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what kind of business entity would you recommend, if I want to be self employed and available as a subcontractor for product sales and consulting for a business located in Canada? Is an LLC entity recommended?

Thank you for your question. Please permit me to assist you with your concerns.

The most flexible business structure in this instance would be an LLC. S-Corps are also a good choice as their tax structure may be more favorable if the income is under $200,000, and an S-Corp is impossible to sell by an another artificial entity, making it somewhat protected from takeovers.

Good luck.

Dimitry K., Esq. and 3 other Business Law Specialists are ready to help you
Customer: replied 3 years ago.


Ok so back to the s corp, I'm not sure what you meant on being impossible to sell by another art/entity, to be somewhat protected from a takeover?

Denzil,

An LLC has shares. Those shares can arguably be purchased by someone else. For example if you choose to later give away ownership shares, you can do so. That could allow a third party (which could be an another LLC or C Corp) to buy up shares and take over control from you.

An S-Corp is somewhat different. S-Corp shares are limited, they can only be transferred to individuals, not businesses, there is a limit on how many shareholders an S-Corp may have, a limit on the site of income, and a limit on how those shares can be transferred as well as their amount. An LLC has none of those limitations.

Since an S-Corp share cannot be sold to a business entity, an S-Corp is immune from being owned by an another business entity and from becoming a subsidiary.

Good luck.

Dimitry K., Esq. and 3 other Business Law Specialists are ready to help you

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