March 1, 2009

LLC Vs. S-Corp

Today I spent a portion of my day organizing receipts.

It's tax time again and if you own an S-Corp taxes are due on March 15th.

I've had an S-Corp for 3 years now and I believe this will be my final year using this legal entity.

I have always liked the idea of being able to sell stock, the sound of "inc." after the name of my company and the fact that corporations as legal entities have been around for so long that what they legally can and cannot do is pretty well laid out.

But I primarily use my S-Corp for tax write offs and for asset protection. And over the last couple of years, by trial and error have learned that the best legal entity for my needs is an LLC.

LLC's have less paperwork associated with maintaining them, the businesses taxes can be filed right along with your own individual income tax, and all the while you maintain the same level of protection.

I'm not sure why it's taken me so long to see the light, but in 2009 I'll be saying so long to my S-Corp.

Wishing you continued success!

Cristopolis Dieguez

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