Re:C Corporation vs S Corporation vs LLC
by lionhearted on Monday November 10, 2008 @03:50PM
(#359704)
"2. Taxes: Every dollar you take out of LLC is salary (and subject to payroll taxes). In an S-Corp, any money you take out of the business after paying yourself a "normal" salary is a distribution and free of payroll tax."
--> That one is HUGE in favor of S-Corp over LLC. That's 7% on all income over whatever you can justify as your base salary. If a company is going to be small-ish and profitable for a while, S-Corp is worth a few thousand dollars each year at the cost of added paperwork. LLC has more flexibility, but S-Corp can do all the same things if you don't mind filling out more documents and maybe thinking about it a bit more.
--> That one is HUGE in favor of S-Corp over LLC. That's 7% on all income over whatever you can justify as your base salary. If a company is going to be small-ish and profitable for a while, S-Corp is worth a few thousand dollars each year at the cost of added paperwork. LLC has more flexibility, but S-Corp can do all the same things if you don't mind filling out more documents and maybe thinking about it a bit more.