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    1 Reply Latest reply on Sep 10, 2009 12:39 PM by BizInvest

    LLC vs S-corp formation

    jim001 Newbie

      I just checked with CPA and the cost of LLC or S-corp formation is about $700 including everything.

      Is this cost normal?
      What steps do I need to follow, if I want to form such entity by myself?

      What tax forms do I need file in both cases(LLC with S-corp filing status and plain S-corp) for both federal and state of TX?
      Which one(LLC with S-corp filing status or plain S-corp) is better for 1 person owned/operated business?
      Does city also need to be paid any taxes for LLC or S-corp legal entities?

      Thanks for your time
        • Re: LLC vs S-corp formation
          BizInvest Adventurer
          Hi Jim,
          the benefit to an LLC is that you are not double taxed as with a corp. this is because in a corp, you are taxed as the corp, and then personally for the income. LLCs are "pass though" so only your income is taxed.
          that said, LLC are more difficult to maintain and can be more costly to set up depending on the state.
          you best bet is to find the secretary of state in your state (look it up on google) and speak to one of the people there in the corp dept. I have found them to be extremely helpful, and usually, with the forms they have for you to fill in, it's pretty easy to do the whole thing yourself.

          Good luck