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Michael Gonzalez
Michael Gonzalez, Attorney
Category: Business Law
Satisfied Customers: 536
Experience:  Managing Member at Perez-Mena & Gonzalez, LLC
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I have an auto repair and have been struggling with how to

Customer Question

I have an auto repair and have been struggling with how to have it structured. Right now I am a sole prop, but would like to be able to qualify for business loans to grow my business. Is the LLC best way to go for an auto shop, or I have also been told an S corp is best?
I am most worried about onerous tax filings and have been told they are more likely to be audited.
Submitted: 1 year ago.
Category: Business Law
Expert:  Michael Gonzalez replied 1 year ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

The decision to create an LLC or file as an S Corporation are mainly driven by the tax implications. Specifically, these are "pass through" entities that are not subject to the "double tax" of a "C" corporation. Thus, the LLC allows for all the protections against liability that a "C" corporation provides but without the tax implications. If you do not plan to have 100s of employees, then an LLC would likely be the more desirable set up for your business.