LLC Or S Corporation

DoubleJ

Any opinions or which is better for a GC, LLC or S Corporation? I see the pros and cons listed in the Florida Contracting Manual, but was wondering about folks with actual expeience as either.

thom

My contracting business is an S, property management is an LLC. Wish I'd done them both as S's.

There is very little difference but there is some. You will probably need to fill out a form regularly for your state with the S but not the LLC.

I wish I'd done the LLC as an S because I'd be doing the identical forms for the IRS instead of figuring out different forms for different entity types.

Bryan Weaver

In California the CSLB will not let a contractor be an LLC, but you are in Fla, so it really does not matter. The reason they don't allow LLC's is the limited liability they don't want contractors to hide behind.

DoubleJ

Thanks. I was leaning towards a S Corporation. Anything to make the taxes easier is good.

Tonkadad

See how your workmans comp treats LLC versus S-Corp. Where I live a LLC has to provide workmans comp for their members regardless if they get paid or not. For a S-Corp workmans comp is not required for 50% owners.

Check with your local Dept of Labor for the requirements.

georgia dawg

There are benefits to both. I have a one person S. The main benefit is being able to declare some of your earnings as dividends, instead of income. Dividends are taxed at a lower tax rate. The paperwork is minimal. However, corporate officers are public info so everyone can find out what I own. If I was an LLC, I could have an agent listed on all docs/deeds and no one would know what I own. Your state's LLC laws may be different, though. Best bet, consult a lawyer or your accountant.

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