JustAnswer > Finance
Ask A Question|Register|Login|Help
JustAnswer

Finance

Ask a Finance Question, Get an Answer ASAP!

Have your own Finance question?

3 Financial Professionals are Online Now
characters left:
Not a Finance Question?

Related Finance Topics:

  • Pay
  • ,
  • Tax
  • ,
  • File
  • ,
  • Taxes
  • ,
  • Income
  • ,
  • Florida
  • ,
  • Returns
  • ,
  • Business
  • ,
  • Required
  • ,
  • Liability
Bookmark and Share

Question

For a small Florida surveying business with only two or three employees, is there an advantage to an LLC, over an S-Corp. I have already filed as an S-corp but was subsiquently told that that was a big mistake and I should fix it now. What is your opinion?

Submitted: 265 days and 9 hours ago.
Category: Finance
Value: $9
Status: CLOSED
+
Read More

Optional Information

Florida

Posted by Lev 265 days and 9 hours ago.

Answer

The primary advantage of having S-corporation - is that the owner or owners will receive taxable income in two ways - as reasonable wages and the rest as dividends - the dividend part will not be subject of employment taxes and if the gross business income is above certain level - you will have tax saving overpasses additional overhead expenses.

 

Let me know if you need any help.

 

265 days and 8 hours ago.

Reply

So there are no advantages of LLC other than the once the business grows large enough?

Accepted Answer

Single member LLC for tax purposes is disregarded entity and all income and business expenses are reported on owner's individual tax return - schedule C.

LLC with several members generally is treated as a partnership and is required to file a partnership tax return. The partnership doesn't pay any taxes but pass all tax liability to partners who in turn report such income on individual tax returns.

 

From legal point of view - the LLC is a separate business entity - it may own properties, may have bank account, and is responsible for some taxes (employment tax, sales tax, etc - but not income tax)

 

S-corporation is not a legal entity - you will still have LLC as a legal business organization - that will be treated as S-corporation for tax purposes.

 

Please see HERE a brief description of each business structure.including advantages and disadvantages.

 

Picture
Expert: Lev
Pos. Feedback: 99.1 %
Accepts: 1001
Answered: 6/18/2009

Tax Preparer

Personal Investment, Tax Preparation

265 days and 6 hours ago.

Reply

Thank you, that answered my question

+
Read More

Related Finance Questions

  • what part of the constitution or what statute ...
  • Do Directors report to shareholders?
  • Can I still contribute money to my already
  • what happens when the survirimg lives, and elects ...
  • There's one "sport" in which neither
  • can i sign off my car payment in my taxes to actually pay .....
  • If a C-Corp buys back its own stock, treasury stock, is ...
  • What taxes are to be paid in Industry, CA?



Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
Question List | Become an Expert | Terms of Service | Security & Privacy | About Us
© 2003-2010 JustAnswer Corp.