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Thread: LLC or Corporation Help??

  1. #1

    Default LLC or Corporation Help??

    I have read that as a corporation you basically get Double taxed, it seems like you would have rto pay youself out a certain amount as the owner. But because a LLC is the newest entity, it doesn't look like there is tax structure created for LLC's yet. So you have to decide to be taxed as a S Corp, C Corp, or Partnership. If your business is not a partnership though, then you're forced to be taxed as a corporation, meaning Double Taxed.
    I'm trying to figure out which would be better for my company. We hire subcontractors, not employees (if that matters).

    I appreciate any insight please!!

  2. #2
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    Single-person LLCs are disregarded taxing entities. S-Corps are like partnerships in that all taxes flow to the shareholders. Both offer the liability protection you might want without double taxation. It's only C-corporations that are taxed on their profits retained at the end of the year AND any money you received from it is also taxed. It's sort-of double-taxation, but only if you're the only shareholder; otherwise it makes total sense that the corporation is a distinct entity to be taxed and you are a distinct entity to be taxed, so it's not really double-taxation from that perspective.
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