Is it true that for tax purposes it is better to be a Subchapter S Corporation than a Limited Liability Company?
Video Transcription
When you’re choosing between a limited liability company and an S corporation, the most important thing to know is that a limited liability company for state law purposes can be an S corporation for income tax purposes. That is really one of the better ways to form a business because limited liability companies offer enhanced creditor protection for state law purposes, but are very flexible for income tax purposes.
In fact a lot of the work I do involves taking state law corporations that have made an S selection and converting them to LLCs that are still taxed as S corporations with the same tax payer ID and a continuation of the same business. An LLC taxed as an S corporation is a very advantageous way to do business.
