Quote:
Originally posted by gar1976
And I absolutely did not answer your original question. Dear God, what's wrong with me? Anyways, I'll try to post some answers tomorrow.
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I'm back....days later.
C corp - taxed at corporate level, dividends taxable, you take a salary. Can have different kinds of stock. Liability protection. Can have any year end, need to file an 1120. Has it's own tax rate structure, but beware being classified a personal service corp.
S corp - taxed at shareholder level, dividends (for the most part) nontaxable, must take a salary. Cannot have preferred stock or different kinds of stock. Liability protection. Can elect to have different year end than 12/31 if there is a valid business reason to do so. Needs to file an 1120s.
LLC - taxed at shareholder level, dividends nontaxable, may or may not take a salary. Can have a gazillion ways of setting up equity to differentiate between owners. Liability protection. For the most part, earnings subject to self employment taxes. Has 12/31 year end. If single-member LLC, no separate form required, can file as a schedule C on your 1040. If more than one owner, you need to file an 1065, which is the partnership tax form.
Let me know what else you need to know. The type of business you are and your growth plans will help determine which type of entity to be, so post those if you want more in-depth analysis.