Quote:
Originally posted by KC911
Why would an S corp be preferable over an LLC? I would think that an LLC is the better option...
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Not an expert but as a 1099 contractor in the software biz I've been asking the same questions recently. As I understand it:
S Corp - protection of a corporation but income "falls through" the corporation to your personal tax return and you don't have to pay a Federal corp tax
LLC - protection of a corporation, pay federal corp tax and personal income tax on the same money.
Doing Business As "DBA" - no corporate protection, no Federal (biz) tax, income goes on personal tax return, pay a small fee to the state every year to register your business name.
Do nothing - I can still deduct medical, my computer, books and I don't have to pay any fees to the state or federal corporate tax.
-Chris