S-Corp versus LLC taxed as an S-Corp
Hey gang,

&amp;#x200B;

I am an independent contractor, about to create a pass-through entity to funnel my income through.  After doing research, I am trying to decide between creating an S-Corp, or creating an LLC that is taxed as an S-Corp.  From what I hear, the main advantage to using an LLC taxed as an S-Corp is that it is a little lower maintenance to have an LLC.  What are your thoughts on the pros and cons of each?

  
Thank you in advance.
[{"id": "eslx78f", "text": "You might want to try /r/FATFire as well if this doesn\u2019t pan out", "replies": [], "depth": 1}, {"id": "esm5xzh", "text": "I went with LLC with S-corp election. I don't see any reason to go with a S-Corp.", "replies": [{"id": "esminjr", "text": "After being taxed as a sole proprietorship last year, my accountant recommended switching to an LLC with S-corp election. We think it will be better for me.", "replies": [], "depth": 2}], "depth": 1}, {"id": "esmennc", "text": "LLC taxed as an S-Corp is the way it is generally done in this scenario.  I'm not entirely sure why but both my accountant and attorney indicated it was the way to go.", "replies": [{"id": "esmsc0n", "text": "I believe that\u2019s because the compliance costs are lower and asset protection is better.", "replies": [], "depth": 2}], "depth": 1}, {"id": "esnsodh", "text": "First, talk to your accountant and business attorney. The consequences of what you\u2019re proposing could be huge. All legal entity types have pros and cons. Are you trying to limit your personal liability exposure, or limit taxes?\n\nIf this is solely for holding an asset, you don\u2019t put assets into a corporation due to basis and other tax reasons. \n\nIf you\u2019re talking about a pass through entity for your contracting business, it depends on what your goals are. A corporation will result in double taxation. Taxes at the entity level, and then taxes again at your income level. LLC is all pass through, typically.", "replies": [], "depth": 1}, {"id": "et8c8vh", "text": "Really depends what you\u2019re trying to do. S-Corp has potential advantages to minimizing self employment taxes versus SMLLC. If you\u2019re contributing property to it, LLC is considerably more flexible. Consult a tax advisor based upon what you\u2019re trying to accomplish.", "replies": [], "depth": 1}]