Re: INC vs. LLC
10-16-2012 08:46 PM
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).
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