Determining which type of legal structure can be a daunting task for new business owners. Our knowledgeable attorneys can offer you the full scope of tax and business law applicable to your new entity.
S-corporations are similar to LLC entity formations in that they are both "pass-through" entities. There are restrictions on who can be an owner or shareholder as well as how many owners can be involved. A S-corporation is operated in a similar manner to the traditional C-corporation in regards to record keeping. A S-corporation offers no flexibility in how profits are divided among the owners. There is a major difference between a S-corp and a LLC in the employment tax that will be paid on earnings, given that the owner of a the LLC is considered self-employed. The entire net income of the business will be subject to self-employment tax. There are many other implications for choosing which entity is right for your business. The business formation attorneys will be happy meet and fully explain all your options in order to make an educated decision for your entity. Contact our Edwardsville law office today at 618-307-4054 to discuss what will work best to help your new business succeed.