The LLC is the more modern form of the corporation. I think one big difference with LLCs, they don't have shares of stock. If you read about corporate shares of stock you'll see there are so many potential problems, I personally wouldn't touch that with a 10-foot pole.
The IRS doesn't care if you're an LLC or a Corporation, they see no distinction, so no advantage one way or the other--just one big disadvantage for LLCs and corps: more paperwork. The "s-corp" is an IRS-specific term that has nothing to do with filing your articles of incorporation, in other words: more paperwork and probably more scrutiny if there's really a tax savings. I don't think there is much tax benefit to forming an LLC unless you figure out all the "corporate lunch" loopholes that probably don't apply to a small business anyway, good luck with that. As an LLC you end up paying a higher "business rate" for everything, plus there is a business tax you're going to pay to Texas every year, I forget the name of it now--ask your accountant :-) As far as liability protection, this is a myth, just look up the lawsuits yourself. If you're a small business, it's obvious to the court who is at fault: you! I believe you only get liability protection with a large business where it is not as clear who is liable, but even then, good luck! I'm not a lawyer but I did just finish a business law class and spent a fair amount of time on the IRS website, Secretary of State website, reading books, etc. So my advice: as long as your business is small, stay a Sole Proprietor and stay out of trouble and pay the self- employment tax with a smile on your face. Texas State has a Small Business Development Center and their advice is probably better than mine, they have offices in Austin and RR - http://www.business.txstate.edu/sbdc/ --~--~---------~--~----~------------~-------~--~----~ Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin -~----------~----~----~----~------~----~------~--~---
