No I'm thinking S-Corp. I'm not sure how it works in all states but my understanding was that an S-Corp isn't even really a corporation, it's just a tax code classification. Whereas an LLC is a "Limited Liability Corporation" which does exactly what the title states, limits your liability. The fact that an LLC (and many other entities) can use the S-Corp tax accounting rules further leads me to believe that an S-Corp is just a tax shelter of sorts and provides absolutely no liability protection.
Taxes, LLC, S-Corp - Blahhhhhh
- Thread starter macromj88
- Start date
No I'm thinking S-Corp. I'm not sure how it works in all states but my understanding was that an S-Corp isn't even really a corporation, it's just a tax code classification. Whereas an LLC is a "Limited Liability Corporation" which does exactly what the title states, limits your liability. The fact that an LLC (and many other entities) can use the S-Corp tax accounting rules further leads me to believe that an S-Corp is just a tax shelter of sorts and provides absolutely no liability protection.
Mine works just fine, thanks for the offer. Here's the first 2 hits on Google for "Does an S-corp provide liability protection"
S corp FAQ: Do S Corporations offer more protection than LLCs?
Quote from there
And since I know how much you love when people cite Wikipedia as a source I'll include it aswell.
S corporation - Wikipedia, the free encyclopedia
It's a tiered system. I believe 1-5 people on Payroll is about that a month. 6-10 is more, etc. But yeah that's their fee on top of the taxes/pay/etc. They pull separate for everything.
They'll pull one time for their fee.
They'll pull one time for the taxes.
They'll pay one time for the person to get what they're supposed to get.
I use surepayroll. Happy with them. You can get a quote here:
Free Payroll Quote - Fast & Easy Payroll Services | SurePayroll
Just fill in nonsense for phone number / email / etc. It does give you the quote instantly.
Free Payroll Quote - Fast & Easy Payroll Services | SurePayroll
Just fill in nonsense for phone number / email / etc. It does give you the quote instantly.
Did you seriously cite a section that says "The factual accuracy is disputed"?
S Corporations | Nolo.com
"An S corporation is a regular corporation that has elected "S corporation" tax status. Forming an S corporation lets you enjoy the limited liability of a corporate shareholder but pay income taxes as if you were a sole proprietor or a partner."
On top of that, you do realize that LLCs can opt to be taxed as S-corps right?
Then disregard that source, I apologize.
Further down on that page it states this:
Which leads me to believe an S-Corp is just for tax purposes and doesn't provide any additional liability protection.
Right so why wouldn't you enjoy increased liability protection and enjoy the same tax code filing status as an S-Corp? This statement also leads me to believe that an S-Corp is just a tax thing.
Heh. You're digging a deeper hole. Quoting bad info doesn't make it good info. Neither does the fact that somebody posted it on wikipedia.
The real truth is yes, an "S-Corp" is a filing status. But, to get an S-Corp filing status, you have to first be a CORPORATION or an LLC. This creates 4 types of "liability protected" pairings (Company Type / Filing Type)
- LLC/LLC
- LLC/filing as S-Corp
- Corp/S-Corp
- Corp/C-Corp
The legal liabilty is roughly the same. And that's not by coincidence. An LLC was basically invented to have a business type with the same type of liability protection as a corporation, without all of the administrative hassle.
LLC's didn't even exist before the 1970's.
Ah so you're not qualified, just like the rest of us.
When I form entities I have almost exclusively used LLC's so I'm trying to understand why someone would use an S-Corp when LLC's provide better protection, pass-through income, and the tax advantages that come with it.I have no doubt that S-corps are good from a tax standpoint but do they actually provide as good or better protection than an LLC? Sure an S-Corp owner gets the protection a shareholder would get, but what about contractual disputes? What about the debts of the company, does a S-Corp protect you from those?
that's probably because an s corp is a tax election and a tax election alone. your points about legal liability is irrelevant; the election is made after - or concurrent with - establishment of the company as a c-corp or llc.
when most people refer to themselves or other companies as having established an s-corp, they mean they created a c-corp and elected s-corp treatment. less often it's LLC's electing s-corp.
the legal liability discussion is pertinent to the underlying legal entity, not the fucking tax election.
discuss
holy irrelevant question batman
you're getting your panties in a twist over a question completely irrelevant to S-corp discussion. contract disputes, shareholder issues, debts, etc are handled by the underlying c-corp or llc.
Ah so you're not qualified, just like the rest of us.
I have no doubt that S-corps are good from a tax standpoint but do they actually provide as good or better protection than an LLC? Sure an S-Corp owner gets the protection a shareholder would get, but what about contractual disputes? What about the debts of the company, does a S-Corp protect you from those?
On the off chance you aren't trolling:
Most of your questions don't make sense, as either a corp or an LLC can file as an S-Corp.
More generally, someone might choose a Corp/SCorp over an LCC (of either type), because:
1) They need to issue stock, or otherwise get funding without taking on partners.
2) They want to attract venture capital ( though a C-corp is better still )
3) There may be a reason to convert to a C-Corp in the future.
4) They want to do company matching on a 401k, especially for owner/employees.
Most of your questions don't make sense, as either a corp or an LLC can file as an S-Corp.
More generally, someone might choose a Corp/SCorp over an LCC (of either type), because:
1) They need to issue stock, or otherwise get funding without taking on partners.
2) They want to attract venture capital ( though a C-corp is better still )
3) There may be a reason to convert to a C-Corp in the future.
4) They want to do company matching on a 401k, especially for owner/employees.