Results 1 to 4 of 4
-
08-16-2020, 01:51 PM #1
- Join Date
- Jul 2020
- Posts
- 44
S corp or c corp
Maybe someone can help me. I currently have a C Corp but I was told by many in the industry that they have S Corps. Can anyone help me with this? Whats the advantages or disadvantages of each when pertaining to our industry? Thanks in advance.
-
08-16-2020, 02:48 PM #2
"S" allows you to pay yourself separately as if you were another employee and not have all your company's profits reflected entirely on your own SSN as with a "C" corp. There are other advantages which I'm not qualified to expand on but PM me if you need a (very) good Bookkeeper/accountant who can break it down for you.
-
08-26-2020, 05:25 PM #3
- Join Date
- Aug 2020
- Posts
- 1
-
08-26-2020, 05:34 PM #4
- Join Date
- Feb 2017
- Posts
- 3,395
I've seen lots and lots of W-9's, but very very few do what I did, and have an LLC filing as an S Corp.
The advantage of the S Corp is that you can keep a lot of your income as "Passive" and you don't pay social security on it, just income taxes (speak with an accountant what qualifies). But the annoyance is that you need to have all sorts of stock ownership and the by-laws as opposed to an "operating agreement." Get the benefits of both, take an LLC and just elect to file taxes as an S-Corp. You can always drop the S-Corp need if you have some reason to later on, like for example you'd want to open a new LLC and take ownership of the old LLC, but you don't want to file a 1120S on the first one, you can drop the S Corp status and go back to a regular LLC. (You can also elect to file taxes as an C Corp in the same way)
Similar Threads
-
Laroma Corp Funding?
By cmarks in forum Merchant Cash AdvanceReplies: 0Last Post: 08-06-2020, 01:45 PM -
Corp Turn Around
By budlightboy in forum Deal BinReplies: 2Last Post: 07-24-2019, 02:36 PM -
Recent S Corp Purchase
By Cold Caller in forum Deal BinReplies: 3Last Post: 06-12-2019, 03:56 PM -
S Corp
By abfunders in forum Everything elseReplies: 0Last Post: 12-12-2018, 10:28 AM -
Corp Service Co
By Ryan Shiroky in forum Merchant Cash AdvanceReplies: 4Last Post: 03-10-2015, 02:09 PM