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Answer from our Guest Expert Kent Capener of Capener Consulting PAGE 5 The Funding Factor What difference does a C corporation or an S corporation make in funding? It can be a big difference. In short, S-corporations can't be public companies. S-corporations, however, can evolve to C corporations. The reverse isn't allowed generally. Remember the pass through of profits provision of an "S" corporation? Well, losses pass back through too. It isn't uncommon for a company to start out as an "S" corporation with investors in to seed fund it and take the tax benefits from the losses passed through and stay in as the corporation converts to a C corporation to take advantage of any appreciation. How do partnerships do in getting equity funding? Okay, once they convert to a corporation they have the same chances as every other corporation. My Final Answer! The spirit of your partnership can remain active and viable much easier in a corporate environment. In addition to all the protections you receive as an officer/owner of a corporation, in the case of partnerships, probably the most damaging problem is when one partner becomes liable for the actions of the other financially. It's true you can be logically in a corporation as well, however, your personal assets are protected. In a partnership, you can be like a violation waiting for the health inspector. I hope this helps you! Please contact me if I can be of further assistance. Kent Capener of Capener Consulting Page 1 - 2 - 3 - 4 - 5 Enter your search terms Submit search form       Search Idea Cafe Web Small Business Tax Center • Idea Cafe Home • Sign Up • Biz Grant Center • CyberSchmooz •Coffee Talk with Experts • People in Biz Profiles • Starting Your Biz • Biz Planning • Running Your Biz • FREE Trade Publications • Marketing • Financing Your Biz • Human Resources • Legal & Biz Forms • Managing Your Biz • eCommerce • You and Your Biz • Gen X • Work@Home • The Fridge • De-Stress • Send an Award • Send an eGreeting • Yoga @ Your Desk • Web Guide • Idea Cafe in the News • About Idea Cafe • Advertise on Idea Cafe • Contact Us • Privacy Policy • Site Map • Small Biz News Copyright 1995-2024, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc. DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages. TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.