Some advice: S Corp, C Corp, or LLC?
albertc
I'm interested in incorporating to take advantage of corp-ro-corp
contracts. Has anyone incorporated as a Limited Liability Corporation
(LLC)? What are the pitfalls? Is it less hassle than an S or C corp?
Is it more limiting? Any advice on the type of corporation that is
accepted in corp-to-corp contracts?
Any help would be appreciated.
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Albert S. Cavaliere
albertc @ bigfoot.com (remove spaces to email!)
Lotus Certified Professional (LCP) Notes Developer (v.3.x & 4.x)
Specialties - Lotus Notes, Visual Basic, Oracle, MS Access, Intranet
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Jeffrey William Gillette
Albert Cavaliere wrote:
>
> I'm interested in incorporating to take advantage of corp-ro-corp
> contracts. Has anyone incorporated as a Limited Liability Corporation
> (LLC)? What are the pitfalls? Is it less hassle than an S or C corp?
> Is it more limiting? Any advice on the type of corporation that is
> accepted in corp-to-corp contracts?
Umm, in North Carolina LLC means Limited Liability "Company". I believe
it is actually a partnership for tax purposes, where the partners have
limited liability like a corp. If your goal is to get around 1099s, I'm
not sure this is going to be the way to do it. My company has been both
S and C, and the only difference as far as I am concerned is the issue
of personal services. If the IRS classifies the C corp as one of these
they are going to tax every dollar of profit at the highest personal
marginal rate plus 1%. You are better off as an S corp in this case.
The C Corp status gives you a little more flexibility in terms of tax
deductibility of benefits to officers, and the tax rate is lower if you
are building up working capital. The S Corp eliminates double taxation
when you want to cash out, and is supposed to be a little simpler (e.g.,
less expensive) on the paperwork. IANAA (I am not an accountant).
Jeffrey William Gillette
Enterprise Computing Solutions
enter...@mindspring.com
suhas...@gmail.com
> I'm interested in incorporating to take advantage of corp-ro-corp
> contracts. Has anyone incorporated as a Limited Liability Corporation
> (LLC)? What are the pitfalls? Is it less hassle than an S or C corp?
> Is it more limiting? Any advice on the type of corporation that is
> accepted in corp-to-corp contracts?
>