New Contributor
Posts: 72
Registered: ‎03-19-2011
Re: INC vs. LLC

mmmagique wrote:

An LLC gives you the flexibility to be taxed as a sole proprietor, an S-Corp or a C-Corp. (if you qualify for the Corps) As far as I can see, an LLC has a lot more flexibility and less yearly requirements than the corps do. 

I agree and think mmmagique is spot on!  The flexability for taxes with the liability protection of the traditional corporate vehicles (C and S-Corp.) sums up the main benefits of the LLC.  It is also more streamlined from a managment perspective, with the tradeoff of not having any stock issued (which could be sold to raise capital in the case of a Corporation).  Having had and operated both an S-Corp. and an LLC, I much prefer the LLC for most situations.  Generally less reports, taxes, and required meetings for LLC's as well.  Single member LLC's are possible in most jurisdictions while single member Corporations are generally impossible to establish with only a single member (usually require minimum of President and Secretary and/or Treasurer).

EQ FICO 695 (4/26/2012)
Lender Pulls (for mortgage) 12/03/2012 - 698 EQ, 729 TU, 721 EX
Business Cards: Discover Business Miles and US Bank FlexPerks Cash Rewards
Personal Cards: Capital One, Chase Freedom, Chase Amazon, Wells Fargo Rewards, Amex Zync NPSL, Target, Chevron/Texaco Store Card and VISA, CareCredit