Quote:
Originally posted by shermsshack
So it looks to me as if the S-Corp is more beneficial for an individual without partners working for other companies. Maybe I'll do an S-corp for my personal income and an LLC when I partner with a couple people on the programs. I planned on the LLC for the program already, but I was just wondering the best route to take for my personal work.
I assume this is sort of what you have setup, KRL?
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Who said you can't have partners with S-Corp? It's almost exactly the same as an LLC. The differences are: the way you go about setting one up, S-Corp limit of 75 shareholders (partners) and other restrictions such as only a U.S. entity is able to create one. The tax benefit realized to the S-Corp is that if you retain most of the money in the corporation initially and distribute most of it in the form of dividend payments later, you're subject to less tax than a LLC.