LLC, Sole Prop, Or Corp... - Business - Contractor Talk

LLC, Sole Prop, Or Corp...

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Old 12-18-2017, 11:09 AM   #1
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LLC, Sole Prop, Or Corp...

After talking to a few accountants, my partner and I are thinking about having our construction company set up as an LLC and possibly be taxed as an S-Corp for tax savings purposes. Just curious to see how you all decided to set up your business structure and what pros/cons anyone cares to share. We're basically looking for a simple structure to have liability protection and simple accounting/tax implications. I'm in CA, if anyone has an accountant to refer, shoot me a PM.
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Old 12-19-2017, 01:52 AM   #2
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Re: LLC, Sole Prop, Or Corp...

with s-corp, you can save on the 15% self employment tax. however book keeping becomes more complicated and costly.
with an llc, you do your taxes like normal. less paper work.

do llc for liability protection, or if you're making enough money, then go with an s-corp for the tax savings.


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Old 12-19-2017, 12:43 PM   #3
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Re: LLC, Sole Prop, Or Corp...

We are an LLC that elects to be taxed as an S-Corp and it sure saves us money. We work with an accountant to do our yearly tax filing and the arrangement works well for us. I think it depends what level you're at, we have revenue of a couple million a year and it works well for us. My advise is if you've found an accountant that you trust and is knowledgeable then they can look at previous years taxes and see if it would benefit you or not, that's what we did.
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