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Should An S Corporation Be My Permanent Tax Status?

Not necessarily. Unless you have already formed your corporation, you should consider an LLC as an alternative. You can get the same limited liability protection of an S Corporation plus pass-through tax benefits that outshine those enjoyed by an S Corporation.

LLC members may be able to deduct more of their share of the business’s losses on their tax returns in a year than S Corporation shareholders could. An S Corporation shareholder can deduct no more than the “basis” in his stock (amount paid for the stock, plus and minus adjustments during the corporation’s life, and plus any personal loans to the corporation). An LLC member can deduct more because his pro rata share of all money borrowed by the LLC can be added to his personal loans to the LLC when calculating the maximum he can deduct in a given year.

Tax issues are very complex so it is always advisable to consult with an expert tax advisor before making any final decisions.

Start forming your LLC or S Corporation now >>

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DISCLAIMER: The information provided in this site is for general information purposes only and not legal advice.
MaxFilings is not a law firm, does not offer legal advice and is not a substitute for a law firm or an attorney.
Your use of this site is at your own risk and is subject to the terms and conditions in our  full disclaimer.

MaxFilingsMaxFilings is an online incorporation service that lets you incorporate or form an LLC in just 10 minutes, or start organizing your information until you are ready. There is no charge to store incorporation information in the secure MaxFilings system, and there is never any obligation to order.

MaxFilings incorporation fees are very affordable, and an extensive library for researching your choices is available at www.maxfilings.com/incorporation-knowledge-center.

Newly incorporated businesses also have access to online promotional services such as business cards, PR, web sites, and SEO services through partner company SEO Advantage (www.seoadvantage.com) .

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© 2008 MaxFilings.com All Rights Reserved. DISCLAIMER: MaxFilings, Inc. is a service company and does not provide legal or financial advice. The information provided on this site is for general information purposes only and not legal advice. MaxFilings is not a law firm, does not offer legal advice and is not a substitute for a law firm or an attorney. Your use of this site is at your own risk and is subject to the terms and conditions in ourÊfull disclaimer found at: www.maxfilings.com/disclaimer.html