Comments on: S-Corp’s vs. LLC’s

By: Brad Feld

Brad Feld — Thu, 18 Mar 2010 15:53:04 +0000

Actually, they are both equally good and an S-Corp is probably a little easier to deal with.

By: Blake K.

Blake K. — Thu, 18 Mar 2010 15:51:09 +0000

So, if you're a solo venture and will never need VC, an LLC is usually a better option than an S-Corp?

By: waltk

waltk — Sun, 03 Jan 2010 14:29:03 +0000

I have the same question. Did you ever find an answer to this?

By: Brad Feld

Brad Feld — Wed, 18 Nov 2009 23:16:05 +0000

You need to check with a lawyer to make sure you do this correctly.

By: Albert

Albert — Wed, 18 Nov 2009 15:29:29 +0000

I started my INC with a C corp status. I have not profited any money this year and would like to switch to a S corp status to avoid double taxation. Should this be an issue for this calendar year? It is just me as a owner in the company for now.

By: rodger marsh

rodger marsh — Mon, 06 Jul 2009 02:39:50 +0000

I am pondering the s- corp vs LLC as well and looking at different states to file in one option that i have not seen in any of these threads is this.for those who like the LLC simplicity but want the s-corp taxing a LLC may make a election to be taxed as a s-corp this is done by filing the IRS form 2553 and must be filed with the IRS before the 16th day of the third month of the tax year in which the election is to take effect.An LLC that is taxed as an S corp is still a limited liability company from a legal standpoint (subject to the laws governing limited liability companies in the state of formation); however, for tax purposes it is treated as an S corp. Hope that info. can help some folks…cya's

By: Rodrigo Rey

Rodrigo Rey — Sun, 05 Jul 2009 21:05:35 +0000

Hello everyone. I have a question. I’m oppening a tv poduction company in miami, florida. I will not have any employees. Every project I get, I’ll have everyone working on it give me an invoice. Is a LLC good enough for me?

Thank you so much.

Rodrigo Rey

By: Brad Feld

Brad Feld — Tue, 09 Jun 2009 13:58:06 +0000

You should really check with a lawyer as this will vary by state.

By: Linda

Linda — Tue, 09 Jun 2009 13:56:04 +0000

Hello,

I set up my company as an S Corp in 1995. We are a software training and consulting company. Originally I decided that an S Corp was the best route to take because I was told that as an S Corp my personal assets were protected. As of late several folks have told me to look into changing to an LLC. Their thought is that personal assets are more protected under an LLC than an S Corp. This is definately not my area of expertise and wondered if anyone would comment.

Many thanks in advance.

By: Brad Feld

Brad Feld — Sun, 07 Jun 2009 14:30:05 +0000

If you aren’t going to raise any more money, stay an LLC.

By: John P

John P — Sun, 07 Jun 2009 05:59:07 +0000

We are a Facebook developer that has started making some serious cash (already profitable). The company is an LLC with half the company shares allocated to founders and other half to investors/employees. Currently, there is only one investor, my uncle, and given that we are already making money, we dont plan to raise money from VCs anytime soon.

We are planning on ramping the team from 5 employees to 15 this year. Should I think of converting to C-corp or keep it an LLC? If I convert to C-corp, I will need to start paying taxes.

By: More on LLCs | Colorado Startups

More on LLCs | Colorado Startups — Mon, 30 Mar 2009 00:05:37 +0000

[...] S Corp’s vs LLCs (Feld Thoughts) [...]

By: Brad Feld

Brad Feld — Wed, 11 Mar 2009 10:05:03 +0000

Either will work – there are pros and cons to each depending on which state you are in (check with a lawyer).

By: steve kenberg

steve kenberg — Wed, 11 Mar 2009 05:46:52 +0000

But what if you are not only not ready for VC but dont' want or need it. What if you are a small one person business. Is S-Corp still the right way to go over LLC?

By: Brad Feld

Brad Feld — Sat, 07 Mar 2009 21:37:15 +0000

Katherine – I don’t know the specific rules for NY so it’s hard for me to opine on which is better for your specific situation. I’d encourage you to talk to a lawyer who does these types of company formations regularly and get their feedback.