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S-Corp, LLC or Sole Proprietor ?
If you own 100% of your business which one is the best to have? S-Corp, LLC or sole proprietor ? Is it a good idea to pay yourself as an employee with an S-corp? Pros and Cons? :helpme
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Definitely not sole proprietor. The rest depends on your personal situation. Speak with a lawyer or CPA, they will help you figure it out.
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In Cali I would go with a LLC as a sole owner and do an S-Corp election...
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Scorp and take a pay as an employee
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C-Corp | Delaware
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S-Corp. Pay yourself a small but reasonable salary, but take dividends too. Do not take dividends too regularly or it can be considered regular compensation subject to social security and other taxes you can legally circumvent. You pay income tax on dividends since everything in the company goes to your personal finances at the end of the year.
Always work with a CPA. |
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LLC for sure
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s-corp if you can afford it. your personal assets are much better protected that way.
and definitely pay yourself a salary and get a payroll service like intuit. will make tax time a lot easier. And keep your personal and business totally seperate, get credit cards for the s-corp and bank accounts. |
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