LLC vs S-Corp: Which Is Best for Your Business?

So you're weighing out the differences between forming an LLC and an S Corp. Both offer tax advantages and benefits but the structure you choose should be dependent on your business' goals and needs. In this video we're going to compare LLC's and S Corps, talk about taxation and show you the steps to get your business started.
An LLC is a common form of business. It protects its owners from liabilities such as debts & legal actions, while also using pass-through taxation. One thing to note about LLC's is that they offer flexible management and can be owned by either one person, or an unlimited number of members.
S Corps are similar to LLC's in that they also protect owners from liabilities and they offer pass-through taxation. However, they are limited to 100 owners. In addition to pass-through taxation, S Corps also avoid self-employment tax when they pay dividends.
#llcvsscorp #llc #smallbusiness #payments #scorp #howtostartabusiness #startabusiness
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Chapters
0:00 - Intro
0:26 - Overview of LLC and S Corp
1:13 - TAXES: the key difference
1:45 - Other differences of LLC vs S Corp
2:05 - Pros & Cons
3:07 - Which one should you pick?
3:49 - How to Form LLC's and S Corps
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[@Carololeon]

Hi, To be a partner in an S corp, you must be a resident or citizen. My question is whether a person under temporary protected status could be part of the company?

[@paymentcloud]

Thanks for the question! We’re not experts on immigration and resident status but it appears that you might find what you're looking for on the IRS website:
"To qualify for S corporation status, the corporation must meet the following requirements:
Be a domestic corporation
Have only allowable shareholders
May be individuals, certain trusts, and estates and
May not be partnerships, corporations or non-resident alien shareholders"
Have no more than 100 shareholders
Have only one class of stock
Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations)."
You can read more here:
www.irs.gov/businesses/small-businesses-self-employed/s-corporations