LLC or S-Corp

S-Corp

why s corp?

Why do you think it would be an S corp? That doesn't make sense to me.

S corps are better utilized with partnerships,as a single entity you most assuredly want an LLC.

I am managing member of my LLC and I have an S-corp. So, I think I am better positioned than most to comment about this.

"Likely" is a separate question from "best."

S-corps were popular before LLCs became codified, approximately 1994. They both serve the same purposes regarding liability. The case law on LLCs is less developed than that for S-corps. That shouldn't matter much practically [except see below], but if you end up in court yours might be a case of first impression, meaning nobody did that before. Some people dislike that.

LLC is slightly easier to handle paper-work wise, once it's up and running, but frankly I do not find a huge difference. It is imperative that you file paperwork properly for your S-corp within certain time constraints as you are setting it up. You must file a tax return even if you make no money, for example.

If you are not a Single Member LLC (SMLLC), is *imperative* that your LLC function with a smart, flexible operating agreement with your other members. That's where the lack of case law comes in. There isn't a lot of law on LLC compared with S-corp, so your agreement had damn well spell out everything, because that is what the judge will look to. Mine cost $5,000, it was worth it.

Most important thing is to avoid business partners like the plague. You should just go ahead and marry your business partner and be done with it, you're married to them anyway. Sex doesn't matter any more in New York but watch out for that polygamy stuff.

Yes I didn't get into the "why." :)

i have had c, s and llc--if llc works for you, it's the better way--no idea why, as a re agent, you'd want to incorporate anyway--arent agents just 1099 employees?