Inc, Llc, S-corp?

curapa

My up and coming solo business venture is in the works right now and I would like some input on what type of business entity to create. My current business is an LLC. I know I am not going the sole proprietor route. What are some of the pros and cons of the different entities that I might not realize.

My main goal is to keep my personal accounts and possessions separate from my business.

orson

The biggest pros and cons tend to be tax issues. One pro of an LLC is less documentation, paperwork and filing.

I went LLC and my accountant told me I should have done and S-Corp.

It is not a huge deal to change from an LLC to an S-Corp

I would recommend you consult an accountant for sure and possibly your lawyer as well before you file.

If I had it to do over again I would do S-Corp instead of LLC and have my lawyer file it for me instead of filing through Intuit.

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DavidC

Ours is an LLC that we formed after talking with our attorney and a CPA. The attorney looks at the LLC as basically the same as an S corp except it hasn't been tested in court. The CPA saw the LLC as less paperwork.

Your case may differ depending on where you are and what your professionals believe is best. I'd consult with both before deciding.

FWIW, our attorney set ours up for $700 complete.

Good Luck
Dave

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MGSProperties

IN an LLC, There is one person that is responsible for - Debt the director. LLC's are good for things such as a trading company or an investment company.

If you are opening up a construction company then INC is the way to go no questions about it.

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DavidC

It may be a difference between states but ours is a partnership set up as an LLC. Any one partner can create a debt that the LLC is liable for, no one partner is fully liable.

One thing our attorney cautioned was to not peirce the "coporate veil". In other words, no comingling of business and private funds or property. Doing so opens the door to your personal assets if you are involved in a lawsuit.

The forum is a good place to get ideas and differing opinions, but your attorney and accountant have the advice that really counts.

Good Luck
Dave

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