What are the Tax Differences Between an LLC and an S Corporation?
What are the Tax Differences Between an LLC and an S Corporation?Both the s corporation and the limited liability company have benefits and drawbacks, depending on the particular situation of your business and the state or states in which you do business. Attorney Robert Warwick discusses these two types of business legal forms from a tax perspective. He also suggests that there are many variations, depending on your state, so please check with your state’s business division (within the Secretary of State’s office), or with your attorney, for more information. Answer: Q: Is there a difference between single-member LLC or multiple-member LLC compared to an S corporation, from a tax perspective? A single-member LLC, a multi-member LLC and an S corporation are all “pass-through entities” because the entity’s income is not taxe
