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S Corp vs LLC & Where to Incorporate - Tip #3

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subchapter s corporation, LLC, C corp, S corp: Incorporate your Small Business Today with Since 1899! Alexis Neely tells you how to decide on the best structure for your small business - llc vs. s corp - annd how to do it so you get the most tax benefits, while minimizing your liability.

The key is that you want it to be taxed as an S Corp - because then you can pay yourself out of payroll and have your company take out your taxes for you, so that at the end of the year you won't have to worry about taxes (and you might even get a refund).

If you're an LLC you get taxed on all of your income - but as an S Corp you only pay taxes on the amount of your salary, not on your total income.

Whether you set up an S Corp, or set up an LLC and file for an election as an S Corp depends on the state you're incorporating in. Alexis tells you how to evaluate that decision.

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