I would like create the company. Could any one explan what difference between LLC & S corp and which one is better as REI also Please Show me Where I can Get info and form How to Create. :banghead
thanks
Tim and I have posted our opinions on the topic of entities several times on this board. Do a search and you’ll find plenty to read.
If you still have questions after reading the previous posts let me know.
Thanks I will looking for it
Take care - neither is the right vehicle…
Although there are a few tax benefits of an "S"corp over an LLC -
the LLC gives you far better asset protection
An “S” corp is a look through vehicle that will expose you personally to risks associated with properties you control
An INC. is far better for tax management - although it does need some smarts and skills that only experienced corporate lawyers might understand and it is by far the best structure for asset Protection
There is no tax difference. zero. zip. nada.
There is no tax code for LLC. You can choose to tax the LLC as an S-corp.
There is a subtle difference in ownership. LLC membership is personal property (in Texas) and as such cannot be awarded to a judgement creditor. The most a judgement creditor can get is a charging order against distributions. However, S-corp stock is considered a stock investment. As such is IS available to satisfy a judgement creditor, who can be awarded your investment. Thus the creditor takes over ownership of the S-corp.
Both an LLC and S-corp protect the owner against liabilities arising inside the entity, but only the LLC protects the entity from liabilities arising from the owner.
If you choose the LLC route…be certain…it is more than one member…you and your wife are one…put in someone like your atty for a very small piece of it.
There are more and more cases of piercing the corporate veil …logic being…if you are the only one…how can you be protected from something you did.
I use an LLC, but tax it as an S-Corp.
File form 8832 and 2553.
Are any of you still plowing with out Insurance or organizing your business IE: LLC Or corp?
I would use neither…when you create these entities for protection/insulation, you are creating a liability for an additional tax return with ‘uncle’ who anyone would question their aggressive nature and behavior…if it were me, I would use a trust for my business model…private letter rulings say, no requirement for the trust to file it’s own tax return…pass through the income after you use monies for your expenses and do what you would normally do with your personal taxes at that point…one less interaction with the aggressive nature of uncle sam.
With a trust, you can do same as a corporation…banking, protection of assets, etc.
Hope this helps.
Rob