What are the tax implications of a business registered as a subchapter S corporation versus an LLC?

With the sub-chapter S enterprise, all income from the company goes through the shareholders. The shareholders report all items of income, deduction and credit. With an LLC, there’s a lot more flexibility. A single member LLC can be a disregarded entity for federal income tax purposes. In addition, if it’s a multi-member LLC, it can be taxed as a partnership for federal income tax purposes or can choose to be taxed as a C corporation or an S corporation, so the flexibility is much better with a limited liability company or LLC.

Disastrous Tax Consequences to Avoid When Liquidating an S Corporation
Does a Florida Minority Shareholder in a Closely Held Corporation Owe a Fiduciary Duty to Fellow Shareholders?
What to Include in Your Florida Articles of Incorporation When filing for incorporation in the state of Florida, there are several important pieces of information that must be included in your Articles of Incorporation. Here’s a checklist of what to include: 1. Name of the Corporation: Your chosen corporate name must be included and followed by the word “Corporation”, “Incorporated”, “Company”, or “Limited”, or an abbreviation of one of these words. 2. Purpose of the Corporation: A statement of the purpose for which the corporation is organized, which can be a general or specific purpose. 3. Registered Agent and Address: The name and physical address of your registered agent, who will be the official contact for legal and government documents. 4. Principal Office Address: The street address of the corporation’s principal office. 5. Incorporators: The names and addresses of the individuals incorporating the company. 6. Authorized Stock: The total number of shares of stock that the corporation is authorized to issue. 7. Directors: The names and addresses of the initial directors of the corporation. 8. Optional Provisions: Any additional provisions or clauses that the corporation wishes to include in the Articles of Incorporation. By carefully completing these sections and submitting the Articles of Incorporation to the Florida Division of Corporations, you can ensure that your corporation is properly registered and in compliance with state regulations.
International Implications of Check-the-Box Regulations

What are the tax implications of a business registered as a subchapter S corporation versus an LLC?

Comments