| S corporation status is good. It can save money on social security tax costs compared to a regular corporation or self-employment. Paperwork burden may be slightly lower for an LLC. The LLC eliminates annual minutes for the Board of Directors and shareholders. Hint: this is, 99.9% of the time, a template Word document. In about 20 years of me being the sole shareholder of my own S corporation I have done something else (i.e., minutes other than these template annual documents) exactly zero times. I find that people (whether owners or banks or other beings you interact with) sometimes have a bit of cognitive difficulty with the slight cross-species aspect of being an LLC but walking like a corporation. So there you have my opinion. Nothing wrong either way. I favor a small extra amount of automated paperwork every year over dealing with cognitive dissonance in strangers’ brains. It’s not decisive but it is my preference. To go full Reddit, I want a duck, not a horse dressed like a duck. :-) Both systems work. It’s what you do afterwards with your company that matters. E.g., what you are wrestling with right now. I know of no cookie cutter solutions. Sorry. I manage this for a couple of people (bookkeeping, payroll, tax returns, etc.) in my firm and it is a thankless painful job. |