| The LLC vs S Corp argument that you will hear the | | | | file the IRS Form 2553 and have it filed with the IRS |
| most is about taxes. This argument is so often heard | | | | before the 16th day of the third month of the current |
| because most business owners are concerned about | | | | tax year. |
| how much they will have to pay in taxes. Nobody | | | | With both an LLC and an S Corporation, you will be |
| wants to pay a lot in taxes. The LLC vs S Corporation | | | | able to benefit from pass-through taxation. Any profit |
| argument shows how sometimes choosing to form an | | | | or loss that your business has will be passed onto your |
| LLC with the Corp taxation is the best route to go, | | | | personal income taxes, with both the LLC and an S |
| rather than choosing one or the other. The LLC is not | | | | Corporation. This is where the S corporation differs |
| a federally recognized business entity for tax | | | | from regular corporations, with a regular corporation |
| purposes, so you have to choose another business | | | | there is the issue of double taxation. With both an LLC |
| entity to file your income taxes. Choosing the S | | | | and an S Corporation having, the same tax |
| Corporation for tax purposes allows you to benefit | | | | advantages many people elect to form an LLC that is |
| from the pass through taxation, but allows you the | | | | classified as an corporation for tax purposes because |
| simplicity of forming and running an LLC. If you elect to | | | | it's easier to setup and maintain. |
| form an LLC but be taxed as an S Corp, you need to | | | | |