This is not true. There is another choice you may consider. If this is your first year, or if you have never done what I'm about to describe before, you can elect to file as a corporation and proceed using the decisions you've already made. This is a great choice if you are a low-income, low-profit industry, or if are bootstrapping and have lots of expenses and losses. The forms you need to file federally are 8832 to elect to file as a corporation, then the corporate income tax (21% net) using form 1120. Easy!
