https://www.forbes.com/advisor/business/llc-vs-s-corp/
An LLC, or limited liability company, is a legal business structure that protects the owner's personal assets from the company's debts. An LLC is considered a distinct entity, which means that

https://www.cpaacademy.org/self_study_show/a0D2S00000tnwsbUAA
CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222. CorpNet.com is your trusted resource for business incorporation, LLC filings, and corporate compliance services in all 50 states. Through the CorpNet Partner Program, accountants, CPAs, enrolled agents, bookkeepers, and QB ProAdvisors can now offer business formation and

https://www.jrmartincpa.com/s-corp-vs-llc-exploring-the-differences-finding-your-fit/
Instead, S Corps are "pass-through" entities, meaning the profits, losses, and deductions of the company are passed through to the shareholders' personal tax returns. Some other key characteristics of an S Corp include: • Must have a maximum of 100 shareholders. • Shareholders must be U.S. citizens or resident aliens.

https://weneedacpa.com/2022/04/s-corporation-vs-llc-which-should-you-choose/
The S in S-Corporations comes from subchapter S in the Internal Revenue Code. To be an S-Corporation the entity must meet certain requirements. One of these is unlike LLC Partnerships an S-Corporation can only have 100 members. The main benefit of an S-Corporation is that it offers incorporation while still being taxed like a partnership.

https://www.bench.co/blog/tax-tips/s-corp-vs-llc?blog=e6
Janet Berry-Johnson, CPA-Reviewed by. on. January 26, 2022. This article is Tax Professional approved. ... Because of the difference in how LLC and S corporation owners are paid, some LLC members save money by electing to have their business treated as an S corporation. This is because S corp owners pay Social Security and Medicare taxes only

https://www.usatoday.com/money/blueprint/business/business-formation/llc-vs-s-corp/
This can be a pro for small business owners who want to restrict ownership. However, a fast-growing company may prefer the flexibility of C-corps and LLCs, as both permit unlimited members. S

https://qa.execedonline.law.columbia.edu/blog/starting-a-business/s-corporation-vs-llc/
A limited liability company (LLC) is a type of business entity formed as a private company in the United States.An S corporation (or S corp) is a corporation that elects to be taxed as a pass-through entity (the business does not pay income tax at the entity level; the owners do). While they are different, they have some similarities. Both protect the owners from being used to pay the company

https://llcguys.com/business-guides/llc-vs-s-corp/
An LLC is a type of business structure, while an S Corp is a tax classification. The two are very different, and there are pros and cons to both, with differences including taxes to management structure. To make things even more confusing, in some cases a business can be both an LLC and an S Corp. This is because you are able to form an LLC and

https://tax.thomsonreuters.com/blog/s-corp-vs-c-corp-vs-llc-whats-the-difference-and-which-one-is-better-for-your-business/
The basic steps of creating an S corp are: Step 1: Choose a name for the business, and make sure no other business entities exist that are using the same name. Step 2: File articles of incorporation with the state, including the corporation's name, address, purpose, primary activities, and the owner's name.

https://www.keepertax.com/posts/s-corp-or-llc-for-independent-contractor
The short answer: Becoming an LLC generally won't affect your taxes. Forming an S corp can save you money on your taxes, if your income is high enough. Here's a quick comparison of LLC vs. S corp taxes work: LLC. S corp. Owner pays income and FICA taxes on all earnings. Owner pays income and FICA taxes on salary.

https://www.investopedia.com/articles/personal-finance/011216/s-corp-vs-llc-which-should-i-choose.asp
LLC vs. S Corp: An Overview . A limited liability company (LLC) is a type of business structure taxed like a partnership or sole proprietorship, where taxes are reported on the owners' personal

https://www.customaccountingcpa.com/blog/llc-vs-s-corp-which-is-best-for-tax-purposes/
How are LLCs and S Corps taxed? LLCs are taxed like sole proprietorships or partnerships (if there are multiple members in the LLC). Because an S Corp is a tax classification, an LLC, as a business entity, can attain S Corp status by meeting specific qualifications. For LLCs, not S Corps, the owner(s) must pay a 15.3 percent self-employment tax

https://www.cbh.com/guide/articles/llc-vs-s-corp-which-offers-better-tax-savings/
Shareholders must then pay tax on their dividend shares. LLCs and S corps treat self-employment taxes significantly differently. Self-employment taxes are different from income taxes because they apply to the net earnings of the business and are currently taxed at a rate of 15.3%. That rate is the sum of 12.4% for Social Security (for 2024, the

https://www.cpaacademy.org/webinars/a0D2S00000wH7FVUA0
For all other tax return preparers, CE is voluntary. CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222. CorpNet.com is your trusted resource for business incorporation, LLC filings, and corporate compliance services in all 50 states. Through the CorpNet Partner Program, accountants, CPAs, enrolled agents, bookkeepers, and QB

https://jeffcpaworld.com/corp-vs-llc-which-is-the-better-option-for-my-business/
Self employment tax is a tax imposed on income earned from a sole proprietorship, partnership or LLC that is the equivalent of Social Security and Medicare tax. Usually earnings of an LLC are subject to self employment tax (13.3% in 2012) while S corp earnings are not subject to self employment tax. Please keep in mind that as the owner of an S

https://www.kmco.com/insights/s-corporation-vs-llc-which-is-the-better-option/
LLC owners cannot receive W-2 wages in which tax is withheld, and thus owners are required to make quarterly estimated tax filings, a consideration that could weigh against using an LLC. Wages paid to an S corporation owner for services performed are subject to Social Security and Medicare taxes but allocations of S corporation profits will not be.

https://patrickaccounting.com/blog/s-corp-vs-llc-tax-advantages
Making the Right Choice for Your Business. Both S Corporations and LLCs offer distinct tax advantages for small business owners. While S Corporations may provide potential tax savings through pass-through taxation and distribution strategies, LLCs offer flexibility and simplicity in management and growth.

https://www.plan-wisely.com/episode-61-s-corp-vs-llc-which-is-best-for-my-company/
"The whole purpose of the LLC, the Limited Liability Company, is to protect the assets that are in the business, to the business." - Keith Raymond, CPA "The benefits of an S corp, for the most part, comes down to a popular strategy that is used where earnings within an S Corp are generally not subject to self-employment taxes."

https://fitsmallbusiness.com/llc-vs-s-corp-vs-c-corp/
LLCs pay FICA tax as a 15.3% self-employment tax on the owner's tax return. S-corps pay FICA taxes as payroll taxes with 7.65% coming from the shareholder/employee and 7.65% being paid by the S-corp/employer. Regardless, if there is only one owner the entire 15.3% FICA burden is ultimately borne by the owner.

https://jarrarcpa.com/llc-vs-s-corp-which-entity-formation-is-better/
Deciding between S corp and LLC is a huge task. Depending on your business need you can choose the right business entity to make the most of it. Support | +1 310 887 1313. Home; Locations; ... Jarrar & Associates CPA, 100 Wilshire Blvd, Suite 700, Santa Monica, Santa Monica, CA 90401, United States, (310) 887-1313:

https://www.upcounsel.com/single-member-llc-vs-s-corp
By default, a single-member LLC (SMLLC) is treated as a disregarded entity by the IRS. However, the member can opt to instead be taxed as a C or S corporation to avoid self-employment taxes. An S corporation is a special corporate designation that also enjoys pass-through taxation and avoids corporate income tax.

http://www.scorporationsexplained.com/llcsexplained-scorporations.htm
Why an LLC is Almost Always Best. We suggest you choose an LLC if you're asking the LLC vs. S corp question for a simple reason. An LLC can elect to be treated for tax purposes as an S corporation. In other words, you can set up an LLC for your new venture and, simply by filing a three-page Form 2553 with the IRS, gain Subchapter S tax

https://www.reddit.com/r/Accounting/comments/1wa2to/llc_scorp_or_ccorp_for_my_new_business/
For legal implications, you should ask a lawyer. For tax purposes, an LLC can be taxed as either a sole-proprietor, S corp or a C corp, so 99% of my clients choose LLC, often starting as a sole prop then switching to an S corp later. If you want a W2 at year end, I'd probably go with an LLC electing to be taxed as an S corp.

https://wcginc.com/kb/Audit-Rates-and-Risks-with-an-S-Corp/
There are audits risks with any business form, and for any taxpayer. Typically taxpayers under $200,000 in income face a 1% audit risk. And S-Corps face a 0.42% audit risk. The Treasury Inspector General of Tax Administration (TIGTA) recently released figures about S-Corp audits. Over 62% of S-Corp audits resulted in a no-change audit. Good news.

https://www.govinfo.gov/content/pkg/FR-2024-07-02/pdf/2024-14487.pdf
54898 Federal Register/Vol. 89, No. 127/Tuesday, July 2, 2024/Notices 29 Honigsberg, supra, at 1902. 30 Comment Letter from Better Markets at 3 (Nov. 3, 2023). 31 In support of such assertion, one commenter cited F.C.C. v.Fox Television Stations, Inc., 556 U.S. 502 (2009). The rationale articulated in the Proposal and this adopting release, however, more