Depending upon your business type, you will need to figure out what works better. When you are trying to decide between LLC vs S-Corp, you will need to contact IRS-EIN. IRS-EIN will be able to determine what works best for your business.
The LLC offers plenty of benefits over the S-Corp. With an LLC, you can have an unlimited number of members and subsidiaries without restrictions. When you are in an LLC, you can choose to have the management that best suits you, whether you would like to have members or management run the company.
When it comes to taxation for an LLC, you can expect to have pass-through taxation. Multi-member LLCs will need to file an informational tax return, while single members do not. The LLC can elect to be taxed like a corporation, where the profits are taxed at an appropriate level.
The S-Corp offers a traditional company structure, as it is typically run by directors and officers that oversee day-to-day operations. With the S-Corporation, you can enjoy an easy transfer of ownership as necessary. The S-Corp has a preferable tax structure, as the owner is treated like an employee and can earn a competitive salary.
The taxation for S-Corp centers around pass-through taxation. Pass-through taxation ensures that double taxation is eliminated. With this tax structure, no corporate tax is paid on company profits. Those profits are redirected and reported on the individual’s tax return.
If you are trying to get a business started, IRS-EIN can help you make a decision in the LLC vs S-Corp debate. They have helped individuals from all over the country to achieve their dreams of business ownership. Contact their talented professionals and they will answer your questions.