The business structure you choose dictates your path to commercial success, but choosing the right entity requires extensive research and personal reflection. Each structure has its own set of guidelines, benefits and drawbacks.
How do you know if you should set your business up as a limited liability company (LLC) or an S-corp? We spoke with accountants and business advisors to get their take.
Many entrepreneurs choose to structure their businesses as the ever-so-popular LLC Limited Liability Company or S Corporation. Business owners may struggle with the choice between the structures, but many times but don’t realize that the two aren’t mutually exclusive. It’s possible to have your cake and eat it too by forming an LLC and then electing S corporation status.This is a particularly sound strategy if you have an LLC and the payroll taxes self-employment taxes on the owner/s are high. Here we’ll break down some of the key details on why you should consider an LLC with S corporation election, and how you go about doing it.
Once you’ve made the decision to structure your business as a corporation most likely for the liability protection a corporation offers, you still have a decision to make: Will you form a C Corporation or an S Corporation? Tax concerns often play a major role in this decision. Like the partnership business structure, S Corporations do not pay any federal income taxes. Instead, the business’s profits and losses
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