LLC Vs. S-Corp: What Do I Do?
One of the hardest parts of starting a business is taking action. Now that you have done so, you have found that there are many other obstacles that stand in your way. I remember when I wanted to start up my company, I had a hard time thinking about a business name, picking out the perfect plan, as well as making everything “legal.”
A big concern that many people have is that they don’t know how to incorporate their businesses. Do you go with a LLC? Do you go with a S-Corp? There are a few that you can choose from. By all means, I’m not an accountant and you should never take information on the web as expert advice, but rather as a stepping stone. I should assure you that your best interest is to meet with your accountant to discuss further needs.
What you’re first going to find out is that both of them are completely different things. You’re technically going to go with one, rather than the other based on tax statuses. As long as you meet all the requirements with a S-Corp, you will more than likely be taxed like a partnership.
To make things short, LLCs, as well as a S-Corp are going to provide you with liability protection. This is going to allow you to separate your personal belongings away from your business belongings.
With a S-Corp, you’re going to more than likely be taxed such as a partnership. With a LLC, you’re going to be taxed on however you want to be taxed. If you want to choose a partnership, you can. If you want to go another route, you can do that as well.
If you’re thinking about going the S-corp route, you may want to look into a LLC first, because you’re going to find that a LLC is going to more than likely have everything that you’re going to need. A LLC is generally cheaper to start up and a lot easier to maintain, compared to a S-corp.
Again, you’re going to want to make sure that you meet with an accountant if you’re confused on some particular issues.
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