Which is Best: LLC Taxed As An S vs. Sub S Corp

Steve A.Steve A. subscriber Posts: 1 Member
in Business Planning

Parameters:

Currently a C Corp. Changing to S next year.

Single shareholder is also the only employee.

Usual Fee income: $500K - 1MM.

Salary = 50% of fee income.

Maxing SS and retirement contributions is not a consideration.

My state does not have a corporate nor individual income tax.

My state allows exemption from Workers Comp.

My Understanding:

Converting to an LLC would require creation of a new entity. Before I go through the time & expense of a new entity, would like to know the pros and cons of each. Number 1 priority is to maximize after tax income. another variable is the amount of paperwork required.

Thanks for your help. I am new to this Forum; I hope I've posted properly.

· Share on Google+ Share on TwitterShare on Facebook
Sign In or Register to comment.