Hi Guys,
Does anyone have any recommendation as to what business entity is best
suited for cybercafes? Specifically, I am considering either an "S" Corp
(i.e. Inc.) or a Limited Liability Company (i.e. LLC).
It is my understanding that both an S Corp and an LLC limits your liability
as an officer or director. And both an S Corp and an LLC avoids "Doube
Taxation" by allowing owners to treat income as "partners." The income from
the cybercafe passes directly to the owner, and is reported on the owner's
tax returns.
Does anyone feel one way or the other, or have other ideas? Oh ya, and if
anyone has had an experience incorporating online, I would be interested to
hear what service they used.
Thanks!
Matt Sisson, MCSE
The LLC combines many of the advantages of a corporation such as limited
personal liability and the tax advantages of a partnership. An LLC offers
limited personal liability protection to all of its owners (termed
"Members"). It is treated like a partnership or S Corporation for tax
purposes, allowing income or losses to be reported on the Members'
individual tax returns, thereby avoiding double taxation. Business entities
and individuals can be owners of an LLC.
An S Corporation or Limited Liability Company are great tax planning tools,
but they require professional guidance. We suggest that you discuss the tax
considerations with your lawyer, accountant or tax advisor. Then, should you
decide that an S Corporation is right for your company
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