ForumsStarting a Business

It is a computer consulting company. Figured the LLC would require less filing and changing to be taxed as S Corp will keep me from having to pay unemployment tax on distributiions. I only have to pay on actual pay to me. No partner.

Hang onto your hat with the self employment tax on the sub S distributions That item is top on the list to be eliminated by Obama so I would keep that in mind in your planning. Also you have to take a reasonable salary. If you set up an LLC you could do it as a sole owner and file it on the 1040 sch C. How are going to do your bookkeeping check out BookkeeperWorld.com It offers inexpensive bookkeeping services so you can focus on running your company.

Sounds like what you want more closely resembles a C Corp. Do some research before you jump into something. Make sure you are making an informed decision.