What are the pros and cons for forming an LLC & Incorporating?

Question

I'm starting a construction business and need to know which would be best for me.

Answer 1

Better tax structure in most cases with an S-Corp. Simpler and cheaper to run an LLC most of the time.
Instead of listining to a bunch of answers here try these 2 Websites:
www.corporationcompany.com
www.legalzoom.com

They both have the realistic pros and cons of each, and they have 800 numbers to talk to someone if you have questions.

You can have either of them do all your paperwork if you want for about 1/3rd of what a lawyer.
I used legalzoom.com just because I went there first.

Answer 2

The most important differences are the taxes you pay. With an LLC, you can choose to pay taxes as a partnership or as a corporation. If you choose to pay taxes as a partnership (which most of LLC owners seem to do), you get rid of double income taxation. At the same time, many expenses that are tax-deductible for a corporation are not tax-deductible for a partnership. The most important of these expenses usually have to do with benefits for owner-managers and their families (retirement plan, health plan, life insurance, etc.)

To put it simply, with an LLC, you are paying a lower effective tax rate on a greater income; with a corporation, you are paying a higher effective tax rate on a lower income.

I'd say, you should talk to an accountant about this. This is an important decision and it should be made with professional help based on hard data.

Answer 3

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Answer 4

both protect you. LLC can be dealth with on your personal tax return, corporation needs its own tax number and taxes.,