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    3 Replies Latest reply on Mar 30, 2009 11:50 AM by mygenieforyou

    My friend's company is going to be LLC.

    TwinSpotlight Newbie

      My friend is going to have an LLC business but I am getting conflicting information on her getting the business S or C Incorporated. We are trying to understand this because she is going to be the only one owning the business. We are operating in SC and I need additional information regarding this matter. I dont fully understan the concept of S or C incorporated. Is she considered sole proprietor with filing business under LLC alone?
        • Re: My friend's company is going to be LLC.
          LLCguy Adventurer

          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.
          • Re: My friend's company is going to be LLC.
            Brew_Master Wayfarer
            LLC, S corp, and C corp, are all separate and distinct things. If you are forming an LLC you don't need to worry about S corp and C corp because you are not an S corp or a C corp. Also if you friend is the only owner in an LLC, your friends business would be considered a single partner LLC.
            • Re: My friend's company is going to be LLC.
              mygenieforyou Adventurer
              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!

              I found a really cool tool that helps with marketing! You can download yours for free and find out how to give them to everyone you know which will help you grow your business!!

              http://geniesavesyoumoney.com

              Dan