LLC is cheaper to maintain because the formality requirement is lower than a corp.
to go public, you really need a C-Corp. S-Corp wouldn't do. LLC can be converted into a C-Corp once just by filing a form.
Tax wise, LLC can elect to be treated as a S-Corp, therefore can enjoy pass-through taxation.
Overall, for a single member start-up, LLC is better than S-Corp. The reason why S-Corp is popular is many accountants are more familiar with Corp. formation and taxation.
One of the reason why LLC was invented is that people want to use partnership tax system. However, partnership tax is much more complicated then corporate tax. That's why most LLC elect to be taxed as an S-Corp.
to go public, you really need a C-Corp. S-Corp wouldn't do. LLC can be converted into a C-Corp once just by filing a form.
Tax wise, LLC can elect to be treated as a S-Corp, therefore can enjoy pass-through taxation.
Overall, for a single member start-up, LLC is better than S-Corp. The reason why S-Corp is popular is many accountants are more familiar with Corp. formation and taxation.
One of the reason why LLC was invented is that people want to use partnership tax system. However, partnership tax is much more complicated then corporate tax. That's why most LLC elect to be taxed as an S-Corp.
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