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Why they shouldn't be an S-Corp:In order begin their business, they acquired a enterprise loan, and also got some money from their parents. Then, they went and met with any nearby CPA firm (like they thought they should) to view what was next. The fact that was next was shocking for.the CPA firm told them they needed to become an S-Corp, a new result of all fantastic benefits they'd get. Now, mind you, this was before they will had find customer! In fact, it was actually OVER a few months before they finally had their first customer.

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