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Ely, Attorney
Category: Business Law
Satisfied Customers: 102150
Experience:  Counselor at Law.
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I have a legal/business entity question for the State of

Customer Question

I have a legal/business entity question for the State of Mississippi. Please clarify if an S-Corporation would be more beneficial than a PLLC or a Corporation for a small business. Thanks
Submitted: 8 months ago.
Category: Business Law
Expert:  Ely replied 8 months 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.

For most small businesses, a PLLC is more beneficial. This is because:

-a PLLC requires less paperwork

-a PLLC can be run as a mom and pop shop, and does not require the meetings and paperwork of a corporation

-the PLLC has simple taxation on a percentage of the income, and then straight through taxation to the owners for anything that they receive as income from the PPLC, allowing a control of taxes that is not possible under either S or C Corp.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Customer: replied 8 months ago.
Thank you for your time Ely. So what exactly does the S Corporation require of the small business. I have been told there are benefits but need to know what they are or what makes the S Corporation so different from the PLLC. What do you think?
Expert:  Ely replied 8 months ago.
You are welcome.
A corporation (generally) requires annual meetings, complex paperwork, stock paperwork (if there are shares), and nuanced meeting requirements. Examples:
The Articles of Incorporation and any amendments
Minutes of director and shareholder meetings
A list of names and business addresses of current directors and officers
Most recent annual report
Any agreements between shareholders
A PPLC has a very minimal paperwork requirement and generally does not require all this.
Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.
Expert:  Ely replied 8 months ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. I am simply touching base. Let me know. Thanks!