C-Corp Versus S-Corp and Their Funding Issues

When you’re just starting a business, you have a lot of momentum behind you.

You’ve got the perfect business idea, you’ve written all of it down into a stellar business plan, and you even have a catchy, one-of-a-kind business name.

That’s it, right? You’re ready to roll.

Not just yet. Many aspiring small business owners come screeching to a halt when they realize that before they open their doors for business, they need to choose a business entity—and choose carefully and deliberately.

But as a small business owner, not a lawyer, you can easily get lost in all the business entities there are to choose from. S corp vs. C corp… but regardless of their differences, both will eventually need funding.

S Corp vs. C Corp: The 3 Main Differences

What are the differences between s corp and c corp, you need to know?

The differences between S corps vs. C corps come down to three major categories: ownership, shareholder rights, and taxation—with the biggest difference being taxation.

Funding Options for Both

Funding options are plenty… but not all work for every business. Sure, there are government, state, and local grants, but let’s face it: There is a teeny tiny chance that you will actually get one of these grants. That doesn’t mean you shouldn’t apply; just be realistic. Bank loans are also a popular options – but possible the worst for 99% of Americans. You MUST pay back your loan monthly, even if you business tanks. If you do not repay, your collateral is at risk (I.e., your home, your in-law’s home, etc.). A much better funding source is a merchant cash advance, from a merchant account provider such as First American Merchant.

A merchant cash advance allows you to gain the funding you need without crazy interest rates and without a nagging payment schedule. You pay when your business makes money. It’s that simple. Really.