Brooklyn, NY asked in Business Formation, Business Law and Tax Law for New York

Q: What’s the best way to save money on taxes when trying to form an llc or Corp with personal 1099?

Llc or Corp? I have a personal job that pays 1099 what is better for me to form when doing taxes?

1 Lawyer Answer
David Lacher
David Lacher
  • New Rochelle, NY
  • Licensed in New York

A: So long as your corporation is an S Corp, there is no real practical difference with respect to taxes between that and an LLC. The profits and losses of the business flow through to your personal tax return in either instance. But there might be other considerations which favor one form of entity over another. For sure, it is more expensive to form an LLC in New York State because of the publication requirement, which does not apply to other business entity forms.

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