An LLC and an S-Corp are pass-through entities which are usually more tax efficient. For most small businesses in the country, those are the best ways to go. A C-Corp is usually for larger businesses who are raising a big amount of venture capital, and/or want to go public in the near future. One of the main downsides of a C-Corp is that you pay double tax. The C-Corp pays the taxes and then the owners pay the tax again when they withdraw dividends from the corporation. That’s for businesses who have more than one hundred investors and are going on a different level. To be honest with you, at 212 Tax, we don’t really deal with a lot of C-Corps. Most of our company clients are S-Corps or LLCs, and because of the way the city taxes corporations, most of them are LLCs. Whether it’s the single member LLCs, our partnership LLCs, most of our clients are LLCs and that’s usually the way to go for most of our small business clients, especially in New York City.