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re: S corp or LLC
Posted on 3/16/14 at 6:24 am to gringeaux
Posted on 3/16/14 at 6:24 am to gringeaux
quote:
What are the pros and cons of each? And which one is better?
I'm not saying there is absolutely zero justification for ever doing an S-corporation, but for 90% of small business owners (perhaps more than 90%) - LLC should be the way to go as the organizational structure.
An S-corp would only be superior, in my mind, if you wanted to open it up to investment to corporate entities and/or issues more than 1 class of stock. In virtually all other situations, the LLC would cover you up until the point you needed to reorganize as a full corporation.
This post was edited on 3/16/14 at 6:24 am
1
Posted on 3/16/14 at 9:22 am to Ace Midnight
quote:I think you have it backwards. An S-corp can't have corporate shareholders, and they are limited to one class of stock. An LLC, on the other hand, can have any type of entity as a member, and it can allocate income, losses, deductions and credits in any manner so long as the allocations have substantial economic effect.
An S-corp would only be superior, in my mind, if you wanted to open it up to investment to corporate entities and/or issues more than 1 class of stock. In virtually all other situations, the LLC would cover you up until the point you needed to reorganize as a full corporation.
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