A limited liability company (LLC) is a hybrid legal entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC is a type of unincorporated association distinct from a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. As a business entity, an LLC is often more flexible than a corporation and may be well-suited for companies with a single owners.
S corporations are ordinary business corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. The term "S corporation" means a "small business corporation" which has made an election under § 1362(a) to be taxed as an S corporation.
Knowing when to form an LLC or incorporate will be a guess at best if you don't understand the reasons behind the decision. We can help that process. You probably understand that protecting your assets and protecting your money are the two most important reasons. But, picking whether to form an LLC or an S-Corp, is where we can really add value. Please contact us, to learn more.
Trucker Tax service
nationwide tax consultant to the otr driver