3 ms·
What are the distinctions?
by aantix 7y ago
What are the distinctions?
- pdevr 6y agoA lot to write about, but in a nutshell: LLC is a business entity type. S Corp is a way to be taxed. With LLC, life is simpler (formation, filing taxes, maintenance). With S Corp, you can distribute the profit as dividend (at a lower tax rate) after paying yourself a reasonable salary. Edit: I just noticed that you'd posted the original comment in this thread. So, LLC electing to be taxed as an S Corp means simpler filing requirements (as opposed to C Corp and the like), coupled with the ability to distribute dividends.