Our law office can assist you in two main entity structures: the S Corporations and limited liability companies (LLC). Both are similar in that they are “pass-through” entities for tax purposes; the income of these companies is passed through to their owners and reported on the owners’ personal income tax returns.
So what is the difference between an S Corporation and an LLC? And which structure is right for you?
The answer depends on your own unique situation. Generally, if operational ease and flexibility are important to you, an LLC is a good choice. If you are looking to save on employment tax and your situation warrants it, an S Corporation could work for you.
Click on the links below to read more about the similarities and differences between S Corporations and LLCs.
While the potential employment tax savings may make the S Corporation an attractive structure for your business, bear in mind that there is substantial additional paperwork associated with payroll tax.
Medical Insurance Premiums: Group Medical Insurance and Self-Employed Health Insurance premiums paid for a “greater-than-2% shareholder-employee” may be deducted by an S Corporation as long as the premium is included in gross income or wages. An LLC, no matter the entity classification, may deduct medical insurance premiums paid as long as they are included in gross income or wages (only for shareholders who hold greater than-2% of the LLC Units if the LLC is classified as an S Corporation).
The text, graphics, arrangement and presentation of materials contained on this Web site are copyrighted by The Law Office of Gary E. Gill, P.S. All rights reserved. You may download and print materials from this Web site solely for the purpose of reading the materials and retaining them for reference purposes. Any other use of the materials, including copying, distribution, retransmission or modification, without express prior written permission, is prohibited.
Your use of this Web site does not create an attorney-client relationship between you and The Law Office of Gary E. Gill, P.S. The materials set forth herein are provided for informational purposes only and do not constitute legal advice. Similarly, email messages sent to The Law Office of Gary E. Gill, P.S., or any of its employees do not create an attorney-client relationship.
The materials presented on this website are intended solely for informational purposes. Links to other websites are provided for the user’s convenience. They do not constitute endorsements of the linked websites. The information provided does not constitute the legal opinion or legal advice of the Law Office of Gary E. Gill.