S Corp, L.L.C, or L.L.P?

Question

Which is a better type of business for a small consulting firm, with two partners, that may need financing in the future? An S Corp, L.L.P, or L.L.C?

I'm getting ready to register a business and after reading and more reading about different types of entities, I'm more confused that before.

Thanks,

Answer 1

An LLC would be taxed like a partnership. An S corp would pay you salaries and remaining profit or loss would be distributed based on your percentage of ownership. You would not qualify to be an LLP.