Re:Ask HN: How to structure an LLC for giving out equity
by Terretta on Saturday April 16, 2011 @03:18PM
(#2454623)
> In my state (IL) it costs $250 annually to keep your LLC in good standing, while it costs $75 a year for an S-Corp.
The other reply to yours is detailed and refutes each of your points, so I'll just address this. If you're thinking this $175 difference is relevant, you should probably just stick with a sole proprietorship.
On seven figures of revenue, my main LLC's tax bill (company + members, the same CPA handling it all) is some $7500 a year, but would run twice that as an S corp, and about four times that as a C corp.
Before this company, the last LLC I was a member of grew to 8 figures a year in revenue as an LLC, and changed to C corp only when we took $27M in funding. Prior to those, and before receiving genuinely good advice on the flexibility afforded by LLCs when pursuing high growth and investment, I used S corps. By comparison, LLCs are fantastic.
The other reply to yours is detailed and refutes each of your points, so I'll just address this. If you're thinking this $175 difference is relevant, you should probably just stick with a sole proprietorship.
On seven figures of revenue, my main LLC's tax bill (company + members, the same CPA handling it all) is some $7500 a year, but would run twice that as an S corp, and about four times that as a C corp.
Before this company, the last LLC I was a member of grew to 8 figures a year in revenue as an LLC, and changed to C corp only when we took $27M in funding. Prior to those, and before receiving genuinely good advice on the flexibility afforded by LLCs when pursuing high growth and investment, I used S corps. By comparison, LLCs are fantastic.
PS. "Go look it up" seems a little snide.