IT Consultant:Opening LLC or S Corp...

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Hey folks,

Good Afternoon. I heard if you are a resident here in US, you can start your own LLC or S Corp and run your payroll. I heard it's beneficial especially if you work on Corp-Corp contract basis. Does any one have any idea which one is better LLC or S Corp ? Pros and Cons ?? Your advice would be much appreciated !!!

Thanks in advance !

Ida

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Go for LLC. LLC is good for small and startup organization. It is costly at beginning but worth it. You need to publish in newspaper, depending upon newspaper your cost varies. LLC doesn't have personal liability and tax is less. There is a tax bracket for income.
However S crop has a higher liability and you'll be taxed high. If anyone sue you, you may need to pay from your personal assets too. S Corp doesn't cost much to register. It may cost around $200(depending on state) But if you go by lawyer, then i can't say the price

Atiranjeet

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Thanks Ida. How difficult is it to register LLC by ownself or do I need to go through a lawyer ? What kind of lawyer do I need to seek ??

aingnam01

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Keep in mind that single member LLC is disregarded entity for US Tax purposes. Plus you have to pay self employment tax in LLC regardless. You might want to elect LLC as S corp for tax purposes. Form 8832 & Form 2553.

Atiranjeet

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Thanks aingnam01 for your valuable insight. Can you please tell me the registration procedure in brief if you don't mind ??

Ida

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Youtube it. There are so many tutorials on how to incorporate the business, do domestic LLC and elect S. There are videos on how to fill the form too.
Call or visit the CPA in your town. They normally answer 4-5 questions. After that they may charge you $$. CPA normally suggest you to do LLC with S because there is a lot of work for CPA :)

aingnam01

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inbox me your email. I will email you later.

ida: that's one hell of a accusation. What more work are you referring to when you compare LLC vs S corp?

Last edited: 19-May-16 02:42 PM

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