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    0 Replies Latest reply on Jan 21, 2012 9:48 PM by newmusic11

    LLC electing S-Corp status vs C-Corp electing S-Corp status

    newmusic11 Wayfarer

      Hello,

       

      I am a sole proprietor looking to turn to a better entity type, I am currently choosing between an LLC or C-Corp and possibly elecing S-Corporation status for either one that I chose; I am the only-owner, no shareholders or stock, just me..but I am interested in being able to have shareholders or members put money into the corporation and receive an annual percentage (althought that isn't a main priority, I do have interest in it). Primarily, I am trying to gain the best tax benefits, as well as the liability that llc's and corporations offer to entrepreneurs. I am looking to see which better suits my interests:

       

      I am interested in the following:

      • The best tax benefits for a one-owner entrepreneur...whichever entity type will enable me to save the most in taxes. I want to step away from C-Corp's due to Double Taxation..and being a one-owner business, I hear that no matter which entity I choose, unless I have more then one director or member, I will be paying self-employment taxes. If this is correct, I would like to see which entity then provides the best tax benefits for my business and I.
      • Liability Protection
      • Possibly having Shareholders or Members that could put money into the corporation and receive a percentage of money in return
      • Possibly selling the business one day

       

      With this being said, which would better suit my interests?

       

      Thank you all very much!