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    2 Replies Latest reply on Apr 20, 2009 4:41 PM by rjc2324

    Converting LLC to S Corp in Louisiana

    smallbiz2009 Newbie
      I am thinking about converting my recently formed LLC to an S corp before the 75-day window lapses. I am the sole member of the freelance copywriting/editing compay and I have three clients who pay my LLC as an independent contractor (i.e., no taxes are withheld). I then have my LLC pay me directly. I pay myself a bit less than my clients pay me; therefore, my LLC earns a small profit.

      I am wondering if, for federal and/or state tax purposes, it would be better for me to remain an LLC and simply pay self-employment taxes or form an S corp and pay myself a wage. I would also like to provide myself with health insurance and am wondering about the best approach for doing so, considering the tax implications of the various options.

      I have done some initial research and see pros and cons to either approach. I would like any advice, and especially Louisiana-specific advice, that would help me make a final decision. Thanks.