ForumsStarting a Business

First of all the LLCs and Corporations 2 different entities. the differnt between the corporation and S Corporation is how your taxes are filed. with corp you file your taxes corporation files their own taxes, the s corp you file your taxes with your corporation. it designed for the smaller corporation under 99 shareholders (all need to be us citizens)

if she Files as a single member LLC (if her state allows it) then she needs to elect to be treated as a seperate entity form 8832 so the IRS does not recognize her as a sole prop.

Then she can also elect the s status on her LLC. (This should only be done based on the advise of her tax person)!!

here is a link to more information on the LLC http://www.myllc.com/form-llc.aspx

corporation are great if you plan on raising capital, by issuing stock. Otherwise I'm a fan of the LLC because of its flexibility with filings taxes and ease to operate.

Good Luck with the new business!! you should have your friend sign up to this community if more questions come up.

You might want to join PrePaid Legal for this cuz you can get all kinds of answers for a very reasonable rate. Check around for someone local selling PPL and they can help you!

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Dan