Question

Given the popularity of limited liability companies (LLCs), why choose an S corporation if the tax consequences are basically the same?

Answer 1

Answer)

Here,I expect tax benefits for S corporation is your requirement and hence I try to solve the question in that context.

In S cross the primary advantage is that the owners who are also the employees have tax shield as the s corporation is allowed to declare some portion of income as profits and some portions as salary upto reasonable extent which is not the case with LLC i.e such salary income will not be included considered for self employment tax.