Should I choose an LLC or an S Corp for my business?

  • As types of business entities, both the S Corp and the LLC have advantages and disadvantages
  • Both both the S Corp and the LLC can be taxed as partnerships at the lowest possible rate, or as corporations, at a higher tax rate but with certain advantages such as paying yourself as an employee
  • The LLC does not allow you to invest money; the S Corp does allow you to invest money
  • The LLC is simpler and easier for many small business owners, allowing for quick decisions and simpler tax filing
  • The S Corp requires formalities like annual meetings with minutes and requires corporate officers to sign off on corporate decisions.
  • For most people, the LLC is recommended, but it may be important to seek professional advice when making this important decision.