Ready. Set. Incorporate! 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. |
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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 |
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