Brandenburg, KY asked in Contracts, Tax Law, Business Formation and Business Law for Kentucky

Q: Best small business structure llc, or s corp?

2 Lawyer Answers

A: That depends on a number of additional factors. An LLC is almost always better than nothing. And the S-election requires an entity to be accepted. So the LLC is essentially a foregone conclusion. The question becomes to s-elect or not.

That question becomes first an issue of eligibility. Assuming the entity is eligible to be taxed as a small business corporation we have to analyze income, assets, and the goals of the owners.

Neither is better, each is a tool to be used where appropriate.

Timothy Denison
Timothy Denison
  • Louisville, KY
  • Licensed in Kentucky

A: Depends on what kind of business you want to set up, but most likely LLC. Sub chapter S Corp only offers single taxation but provides not protection from liability while LLC provides protection from liability.

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