LLC vs S-CORP
So, you’ve just decided to go into business for yourself, and you’re wondering how to navigate the tax landscape. From a tax perspective, you may want to consider starting small. However, there are pros and cons with either sticking with an LLC or graduating to S-CORP status. Check out the video below and let our president and founder, Joseph Smith, fill you in. More info can be found at the links below the video. Enjoy!
Let’s Break It Down:
Want more of Joe’s insights about LLC’s? Check out these blog entries:
What Is a Single Member LLC?
Withholding Taxes With AN LLC?
The LLC Scam - Using a Home Based Business for Expenses Instead of a Real Business
And CLICK HERE to learn more about Worker Classification Issues
PROS:
Better to start small
Does not exist for tax purposes
No worker classification issues
Adds a third-party between you and the facility
CONS:
Subject to to Social Security and Medicare Tax
PROS:
You decide how much net profit is salary and how much is dividends
Dividends not subject to Social Security or Medicare taxes
Can expand by adding employees
CONS:
You’ll have to complete a corporate tax filing and a separate state tax filing for the corp, along with your personal tax filing
You’ll treat yourself as a W2 employee rather than an independent contractor
