Thread: S Corp or LLC
View Single Post
Old 01-17-2007, 02:15 PM  
pocketkangaroo
Confirmed User
 
Join Date: Jan 2005
Location: Chicago, IL
Posts: 8,452
It's really a question for your accountant as he'll be able to give you a better understanding for the pros/cons of each.

An LLC gives you good flexibility, especially if you work with multiple partners and each take different shares of the company. Profits are passed through to you individually and it's very easy to setup and maintain. The biggest downfall of an LLC is having to pay self employment tax.

An S-Corp will help get rid of self employment tax which can save you thousands of dollars a year.

It really comes down to saving a few grand and whether the extra paperwork and lack of flexibility is worth it. I stuck with LLC because I'm a lazy fuck.
pocketkangaroo is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote