LLC or S Corporation?

Setting up a LLC or S Corporation is a question many small business owners ask themselves. The small business owners know that incorporating their small business is in their best interest. But should they choose an LLC or S corporation?

Choosing between an S corporation or an LLC really comes down to what you're looking to do with your business corporation. They both have their individual benefits. The question you must ask is how it will impact my small business?

Setting up an LLC is the easiest of the corporate structures. It also requires the least amount of maintenance. An S corporation, on the other hand, involves keeping certain record keeping on an annual basis. This can be an additional workload. For that additional workload, however, you'll receive better self-employment tax benefits when making less than approximately $102,000 a year. If this is important to you the S Corporation might be a good choice. If not, the simplicity that comes with an LLC may be more suitable for your business. If your small business primarily involves the real estate business an LLC will also provide for better real estate business perks. They both provide liability protection for your business, with the LLC getting the edge.

Once you determine whether to go with an LLC or S Corporation, the hard work is done. You can then go to a incorporating service, of which many are available online. An incorporating service will allow you to fill out all necessary forms online. This is a welcome change from times past, were incorporating involved large legal expenses and delays. So, whether it's an LLC or S Corporation it's important to get started, which will benefit your small business. An incorporating service will help you get going.

You can find more issues that will affect your small business at The Money Alert. Their recent RMD article gives you the ins and outs of the RMD (Required Minimum Distribution) as it may apply to your Individual Retirement Account withdrawals. The RMD plays a major role when it comes to mandatory Individual Retirement Account withdrawals. Visit their website to find more informative financial related issues covered.

Tags: LLC or S corporation, Incorporating Services, RMD, Individual Retirement Account