2006-10-26 01:21:35 · 3 answers · asked by gelo 1 in Business & Finance ➔ Small Business
LLc can be a sole proprietorship, a partnership or you could elect to be an s-corp. Any income of an LLC is subject to self employment tax and the owner takes distributions but not salary. The owner of an S-corp. takes salary and any income left at the end of the year can be distributed based on the ownership %'s.
S-corp is more costly to operate and the rules are more technical.
You should really seek professional advice or at least find a booklet that explains the pro's and con's of each.
2006-10-26 01:28:42 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
I highly recommend the book "Incorporating Your Business for Dummies". Great info, easy to read, simple English. Breaks down the definitions, benefits...of each "type" of business. Also has tons of resources in the back of the book.
2006-10-27 04:17:51 · answer #2 · answered by nvjuliet 2 · 0⤊ 0⤋
Go to http://www.score.org/ to find the nearest SCORE chapter. Contact them to arrange for a free one on one meeting with a SCORE counselor to discuss how to organize your business..
SCORE is a nonprofit organization. They provide a public service by offering small business advice and training. .
SCORE's 10,500 volunteers have more than 600 business skills. Volunteers share their wisdom and lessons learned in business. The volunteers are working/retired business owners, executives and corporate leaders.
2006-10-26 10:59:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋