S-Corp or LLC
Hello to all,
I would like to get some advice on whether to go s-corp or llc, as I have gotten 3 different answers from 3 different accountants/attorneys.
I am starting a Property & Casualty Insurance Agency on 11/1. The main carrier that appointed me will be giving me an interest free loan for $60,000...basically $5,000 a month for living expenses. I will be on an accelerated commission plan, whereby the 1st year I will be at 25%, 2nd year 20%, and the 3rd year 15%.
Whatever policies I sell the first year, the earned premium will go back to payback the loan amount. The 2nd year I will get no money, but the policies that I sell will be my income plus all the renewals. I will not have to pay anything back in the 2nd year, as this is waived. In the 3rd year, I have to pay back the balance of the loan.
Since it`s going to take some time to build up the book of business, I do not anticipate me making a lot of $$ the first year. Hopefully in the 2nd year things will begin to pickup and the 3rd year as well.
I underestand the LLC is a little simpler to setup, but I was more concerned about the employement taxes I would be paying vs the S-corp and if I would end up paying more taxes this way vs going as an S-corp.
I was also told that I could start-up as an llc then go to an S-Corp.
Each accountant has their own variation.
I thought I would throw this out to see what others think and maybe get some good feedback to talk to the accountant about. I`m looking to make the best decision.
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