LLC vs S Corp
Posted by taxguru on April 28, 2006
Q:
Kerry,I think I have asked you before and apologise if you have already answered me. I’m involved in a couple LLC and a couple Sub S Corporations. Currently they are all loosing money. ie interest, dev costs, etc. 06 will produce a big profit from one of the sub s’s. I am about to enter into another partnership. My attorney tells me he see’s absolutely no difference in the two from a liability point of view. Do you feel there is a difference from a tax point of view?
A:
If the LLC chooses to be taxed as either a partnership or S corp, it is treated exactly the same for tax purposes as a regular S corp is.
Kerry
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