Quote: (05-09-2016 04:02 PM)se7en Wrote:
Quote: (05-09-2016 03:27 PM)JacksonRev Wrote:
S-Corps are the best for tax purposes. All the benefits of a corporation, minus the double taxation. The main drawback is you need cash on hand to pay taxes each year, since the corporation is not required to pay your portion. And they are more complicated to create and maintain.
LLC's are the easier to create and maintain. I personally use an LLC, but I'll be making an S-Corp by then end of the month, mainly for tax purposes. I registered my LLC through my Secretary of State for $25 online.
Why do you find an S Corp to be more beneficial than a LLC?
As I understand, with a corporation you need to comply with corporate formalities by law, while LLCs you don't really need to unless its set out in your operating agreement. Also, an s corp seems more of a hassle because you still to need to file tax returns for the entity, while with LLC you just file your own return. Finally, with LLC it seems easier to allocate your distributions / profits / losses than with an s corp, where your profit / loss has to follow your stock ownership?
I don't know the answer of what the differences are, but I'm in the same situation and my accountant said (many years ago) that an S-Corp is better for my purposes than an LLC.
Maybe it's because I don't have partner's so I'm the only shareholder? I don't know.