Should Your New Business Select an LLC, S-Corp, or Both?

Business owners–and even attorneys and accountants–can get twisted up in the debate over which is best, the LLC or the S corporation.  But it’s not necessarily an either/or proposition.  Rather, you can set up an LLC first, and later elect to have the LLC treated as an S corporation.  If your LLC operates an active trade or business, and payroll taxes (SECA taxes) on the owner or owners are high, you may find that an S corporation election is the best choice.

Both organizational forms share the characteristic of “passing-through” their income to the owner(s).  Both also provide their owner(s) limited liability protection.  But each has some distinguishing features, too. You, as a new business owner, will want to consider the differences as you choose the form for your enterprise.

Read the full article: http://bit.ly/NaHUnO

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The Grady Firm, P.C. provides exceptional legal counsel to its clients as their dedicated Immigration, Global Relocation/Expansion, and Human Resources Department. We deliver superior customer service and holistic strategies tailored to each client’s background and goals. As a truly global practice, The Grady Firm attorneys provide the business, immigration, employment counseling that American companies need to thrive, and cultural background which foreign entrepreneurs need to be successful in a new market. Our tech-savvy, multi-lingual attorneys are fluent in Spanish, Italian, German, and Farsi. They are licensed in California, and can practice immigration and intellectual property in all 50 US states. The firm serves innovative clients from around the world from its offices in Beverly Hills, Irvine, and San Diego, California. Learn more about us at www.gradyfirm.com.

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