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https://www.readysetincorporate.com/faq-items/why-choose-to-operate-my-business-through-an-llc-instead-of-an-s-corporation/
Export date: Wed Apr 24 16:36:42 2024 / +0000 GMT

Why choose to operate my business through an LLC instead of an S Corporation?


If you want your business life to be simpler, LLCs 1 are the way to go. Unlike a corporation 2 (S Corporations 3 and C Corporations 4 are all corporations, right? Right!), LLCs in California don't have a requirement to hold meetings or keep annual minutes 5, unless they agree to do so. LLCs are also automatically taxed as a Sole Proprietorship 6 if there's one owner, and taxed as a partnership 7 for multiple owners, giving LLCs the advantage when it comes to taking on new partners and making distributions 8 favoring one partner over another, so long as certain rules are met. S Corporations, on the other hand, are much more rigid in how you can structure distributions. So if simple and flexible is the priority, LLC is the better choice.
Links:
  1. https://www.readysetincorporate.com/faq-items/what -is-an-llc/
  2. https://www.readysetincorporate.com/faq-items/what -is-a-corporation/
  3. https://www.readysetincorporate.com/faq-items/what -is-an-s-corporation/
  4. https://www.readysetincorporate.com/faq-items/what -is-a-c-corporation/
  5. https://www.davidherzoglegal.com/ofco_dhz_faq/what -are-corporate-minutes/
  6. https://www.readysetincorporate.com/faq-items/how- do-i-establish-a-sole-proprietorship/
  7. https://www.readysetincorporate.com/faq-items/what s-a-partnership/
  8. https://www.readysetincorporate.com/faq-items/what s-a-distribution/
Post date: 2020-09-02 05:26:53
Post date GMT: 2020-09-02 12:26:53

Post modified date: 2020-09-02 05:26:53
Post modified date GMT: 2020-09-02 12:26:53

Export date: Wed Apr 24 16:36:42 2024 / +0000 GMT
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