Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: CKLA Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121146  
Subject: S corp vs LLC Date: 6/29/2006 3:30 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
This might not be the right board to ask this question on, but if it's not I hope that someone will direct me to the right one. I'm in the process of buying my first business - a small distribution company - and am wondering which type of legal entity would be best: an S corp or a LLC ?

I am definitely looking for something that allows the legal protection of a corporation and also allows pass-through income treatment. And I'll be the 100% owner (or maybe my wife will be part owner, but probably not....I don't think that would make a difference in this decision though), and I'll be working there day to day overseeing a bunch of part-time employees.

I understand that there is some nuance between an S corp and a LLC with respect to how / if I can deduct self-employment taxes, though, but I don't fully understand that. Does anyone have a simple explanation for me ? I think that is really my decision point, and that all the other differences / similarities between S corps and LLCs aren't necessarily relevant to me (eg - the # of owners being limited to 75; the type of entity that can be an owner, etc).

Thanks !

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement