Opening an LLC vs SCorp

[tennisluvr]

Friend okadu planning to open a mesthri dhandha, he asked me which one is better out of the above two. 

He thinks an S Corp is a better option but most desis open LLCs for some reason. 

Forum lo unna mestris and others please throw your opinions. 

[TampaChinnodu]

8 minutes ago, tennisluvr said:

Friend okadu planning to open a mesthri dhandha, he asked me which one is better out of the above two. 

He thinks an S Corp is a better option but most desis open LLCs for some reason. 

Forum lo unna mestris and others please throw your opinions. 

nuvvu adigindi telvadu gaani , andaru aada ladies peru meeda open sestharu. edo minority and women benefits vasthayee ani.

[tennisluvr]

26 minutes ago, TampaChinnodu said:

nuvvu adigindi telvadu gaani , andaru aada ladies peru meeda open sestharu. edo minority and women benefits vasthayee ani.

Yes that's right, but then most of those are LLCs. My friend says S Corp is preferable to LLC but we were still wondering why most of the desi mestris open LLCs

[Spartan]

https://www.legalzoom.com/business/business-formation/compare.html

[papampasivadu]

15 minutes ago, tennisluvr said:

Yes that's right, but then most of those are LLCs. My friend says S Corp is preferable to LLC but we were still wondering why most of the desi mestris open LLCs

S corp lo double taxation bro...like corporation income ki tax kattali, and draw cheskunna salary meedha malli manam personal income tax kattali...

LLC ante anni personal income statement meedhaki ellipothay...no hassle, best for startups..

[bhaigan]

I vote for scorp than LLC

[papampasivadu]

3 minutes ago, bhaigan said:

I vote for scorp than LLC

Startup ki antha hassle waste bro..plus expensive kuda...once business pickup ayyi success aythe change cheskovacchu...

 

[tennisluvr]

21 minutes ago, papampasivadu said:

Startup ki antha hassle waste bro..plus expensive kuda...once business pickup ayyi success aythe change cheskovacchu...

 

Cool bro thanks for the info

[Batman_fan]

I heard LLC is best option compared to S corp. Also many people setup in Delaware as it provides some unique benefits. 

[just2deal]

Major Difference is taxation.Both are typically pass-through tax entities, and while S corps must file a business tax return, LLCs only file business tax returns if the LLC has more than one owner. With pass-through taxation, no income taxes are paid at the business level. Business profit or loss is passed-through to owners’ personal tax returns. Any necessary tax is reported and paid at the individual level. 

So,LLC taxes are at personal level .Any profits and losses should be declared while filing your personal tax returns

LLC is a glorified proprietorship firm.You can not sell or transfer it to third party where as  you can do with S corp

If the owner or a member/partner of LLC dies or withdraws for the LLC,the corp is deemed to dissolved

Coming Delaware or Nevada corps,there is not much advantage unless you are paying state sales taxes .You have to pay Federal corporation Tax/Income Taxes where ever you incorporate

 

 

[tennisluvr]

2 hours ago, just2deal said:

Major Difference is taxation.Both are typically pass-through tax entities, and while S corps must file a business tax return, LLCs only file business tax returns if the LLC has more than one owner. With pass-through taxation, no income taxes are paid at the business level. Business profit or loss is passed-through to owners’ personal tax returns. Any necessary tax is reported and paid at the individual level. 

So,LLC taxes are at personal level .Any profits and losses should be declared while filing your personal tax returns

LLC is a glorified proprietorship firm.You can not sell or transfer it to third party where as  you can do with S corp

If the owner or a member/partner of LLC dies or withdraws for the LLC,the corp is deemed to dissolved

Coming Delaware or Nevada corps,there is not much advantage unless you are paying state sales taxes .You have to pay Federal corporation Tax/Income Taxes where ever you incorporate

 

 

Great explanation, thanks bro

[Peter123]

C corp would do good