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  any accountants ? taxes: LLC or S Corp ??

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Author Topic:   any accountants ? taxes: LLC or S Corp ??
65darkhorse
Gearhead

Posts: 993
From: Northern NJ
Registered: Aug 2002

posted 03-23-2005 02:54 PM     Click Here to See the Profile for 65darkhorse     Edit/Delete Message   Reply w/Quote
Generally speaking, which are you better off with, an LLC or S Corp ?? This is a small start up with 2 partners ... what are the pros/cons to each ? Which one can you write the most crap off with

TIA

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65darkhorse
Gearhead

Posts: 993
From: Northern NJ
Registered: Aug 2002

posted 03-25-2005 11:50 AM     Click Here to See the Profile for 65darkhorse     Edit/Delete Message   Reply w/Quote
anyone ??

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SteveLaRiviere
Administrator

Posts: 43152
From: Saco, Maine
Registered: May 99

posted 03-25-2005 12:28 PM     Click Here to See the Profile for SteveLaRiviere   Click Here to Email SteveLaRiviere     Edit/Delete Message   Reply w/Quote
A quick web search came up with this:

"LLC v. S Corp

You need to see a professional to figure this out. If you are the sole member of a business and form as an LLC, the entity protects you legally for liability (provided you follow all the requirements in your state of incorporation and operation---there are instances when any entity can be pierced to your personal assets) BUT the IRS disregards your entity for tax purposes. This makes it more simple, but also subjects yourself to self-employment tax which can be expensive on say a $100K salary (after 90,000 approx. it goes substantially down). Further, if you have more than one partner in your LLC, that puts you into a very complicated part of the tax code called Subchapter K--which is the section dealing with partnership. VERY complicated.

The S corp. has great advantages as well, such as the ability to avoid self-employment tax. Both protect you from liability. You can issue stock in both, etc...See a professional and weigh your need for liability protection against your need for having a good tax strategy---don't let the tail wag the dog on this issue."

[This message has been edited by SteveLaRiviere (edited 03-25-2005).]

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steve'66
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Posts: 8826
From: Sonoma,CA,USA
Registered: Mar 2000

posted 03-26-2005 08:24 PM     Click Here to See the Profile for steve'66   Click Here to Email steve'66     Edit/Delete Message   Reply w/Quote
quote:
Originally posted by 65darkhorse:
Which one can you write the most crap off with

TIA


My wife says the S corp is the better deal. But, see a professional.

SteveW

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