ForumsLegal and Insurance

I checked your web site and it does not provide any detail informtion about this subject.

As a financial advisor, I would have to agree. S-Corps are the way to go. I just found out that LLC's are a little more difficult to insure from an agent and a client. A company that writes insurance on quite a few unique companies is http://www.phly.com/index.aspx Philadelphia Ins Co has outstanding customer service.

The main thing to do is get a Fed ID# from the IRS and file the Form 2553. March 15th is a critical deadline date. The IRS have even given some slack to S-Corps. http://www.irs.gov/newsroom/article/0,,id=174675,00.html

The IRS website is one of the best info websites in existence. Here is another informational page. The IRS has quite a few of these using the search term scorp. http://www.irs.gov/faqs/faq12-1.html You can search for other biz structures there also.

The original question has many answers. Accountants do seem to like the S-corp form. I think that you would have to assign a weight to each part of the question and make a decision from there. The main thing is to quote Guy Kawasaki, "Quit planning and go do it."

James J Moore
http://www.cutcompcosts.com/

In most cases for small businesses, S-Corp. is better than LLC. In case of LLC, 100% of net income is subject to self employment taxes (15.30%) while in case of S-Corp., the income subject to self employment tax is typically 30-50% of net income. I have illustrated this and the tax saving impact, on my website with the help of an example. Please see "FREE DOWNLOADS" page on my web site www.GlobalAccountingAssociates.com and download the excel file, review and give me your feedback, if any. LLC and S-Corp. both provide the same amount of personal liability protection.