I need to form a corporate entity in California and can't decide between LLC
, S-Corp, or Corporation
. My one entity will embody 3 separate "brands" doing different types of businesses
. One is a music company, another is a marketing agency, and the other is a supplement brand/company...
1.) Initially I will be the only shareholder
and plan to always be the majority shareholder.
2.) For the supplement brand that falls under the entity I'd like to be able to offer stock options (or profit sharing of a percentage) for ownership just in that one piece of the business - can this be done under the same entity to avoid separate entities? Would I be issuing stock or a profit sharing agreement related to sales from just one product sold under the business?
3.) In a related question to #2 I also may wish to offer overall profit sharing in the other two businesses under the same entity. Would this be easier to achieve with stocks or profit sharing agreements?
4.) If this business is expected to be making millions of dollars which would be the best entity to avoid paying high taxes?
5.) I will be getting loans from angel investors and possibly banks but I have no intention of going public with the company.