Depends. An S-corp pays no taxes. A C-corp does,.
S-corps distribute all the profits (if any) to the partners (Schedule K) and they pay just like normal income.
Based on my experience (3 or 4 businesses) an LLC is worthless to most. Where they help is if there is a group, and income is high (a law firm, etc).
People think it shields them, and it does, but most all loans, etc., require co-signing by owner(s) because of the fact that an LLC has little value to back up a loan.
In my case as a PE, I'm personally responsible any way, it it has virtually no value from a professional liability. May be as a shield against a vehicle accident, but a personal umbrella is much cheaper.
My former company (now just my former partners, who I work for BTW) gross around $7-10 million a year (with no inventory - all professional services) and they still co-sign personally for big notes.
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In response to this post by `lag)
Posted: 08/15/2018 at 10:02AM