Is an LLC better than an S Corporation?
This depends greatly on income and your business plan. Several factors should be considered. With respect to liability protection, there is no distinct advantage to either entity. As long as correct procedure is followed when forming and operating each entity, they will each protect the business principals from personal liability. If you are asking the question with respect to ongoing taxation issues, then an S Corporation may be the more attractive vehicle, depending on the salaries paid to directors and officers, whether or not a medical care reimbursement plan will be offered, and what benefits are offered to employees. It is advisable to consult a CPA with specific figures when considering this topic. However, many professionals, including CPAs, tax attorneys and business lawyers fail to look beyond the life of the company. The costs and tax liability incurred by the owners of a business when it is time to dissolve and wind down must be a part of any comprehensive tax strategy. Cap
