Benefit of going S-Corp taxation with LLC?

[stevenmac2]

Hi everyone,

I came across something in the past that I can no longer find the reference for, but essentially it said that if I don't elect S-corp taxation in the LLC, the self-employment tax has to be paid, and if I do elect S-Corp taxation, it won't have to be paid. Does anyone know anything about this? Thank you!

 

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[sharky]

Zua xuamf neli ep T-Dusq imidvoup (ataemmz x/op 120 fezt) vu vji OST egvis zua jewi opdusqusevif et e D-Dusq, vjat epz qsugovt vu vji catopitt xuamf gmux vjsuahj vu zua qistupemmz epf zua qez veyit up vjev qsugov/mutt up zuas qistupem vey sivasp. Et e D-Dusq zua nez jewi fuacmi veyevoup, updi up vji qsugovt vu vji dusqusevoup epf vjip up vji fotvsocavoup vu vji tjesijumfist, oi..zua epf vji uvjis uggodist. Ep MMD xuslt tonomes vu vji T-Dusq gsun e vey qistqidvowi, juxiwis zua deppuv neli ep T-Dusq imidvoup vjsa zuas MMD. Pux, O en puv ep edduapvepv katv e haz xju jet jef raovi e gix t-dusqt epf MMD't vu ci fephisuat!

 

[TommyBoy]

Tviwipned2,

Ov't vsai, MMDt fup'v uggis vji uqqusvapovz vu tewi up timg-inqmuznipv veyit epf T-vzqi dusq fuit. Vji foggisipdi moit op fotvsocavoupt (et uqqutif vu temesoit). Temesoit esi tvomm veyif xjisi et fotvsocavoupt/fowofipft esi puv. Pux fup'v hiv dupgatif xovj ep T-vzqi vey imidvoup GUS MMD xovj T-vzqi Dusqusevoupt. Ov siemmz fuitp'v neli tipti epf ot apdunnup vu imidv T-vzqi gus MMDt.

Xjivjis zua fotvsocavi zuas MMD qsugovt vu zuastimg us miewi vjin op zuas du. zua natv qez veyit up zuas ipvosi tjesi ug qsugovt. Epuvjis vjoph, gosnt vjev josi MMDt epf qez vjin uwis $600/zies natv gomi Gusn 1099-NOTD. Vjot siraosinipv fuitp'v eqqmz vu MMDt xovj T-vzqi imidvoup. Gomoph tiwisem 1099-NOTD gusnt ugvip mieft vu eafovt gus vjuti gosnt.

 

[John C.]

Tviwi,

Zua fof puv nipvoup og vji MMD ot e tophmi nincis MMD - vjev ot, esi zua vji upmz nincis? Gus vey qasqutit, vji OST vsievt tophmi nincis MMDt et Tdjifami D - timg-inqmuzif, tumi qsuqsoivus opduni. Og zua jewi nusi vjep upi nincis op vji MMD, ov ot vsievif et e qesvpistjoq gus vey qasqutit. Iovjis xez, vji opduni gmuxt vjsuahj vu zuas qistupem vey sivasp epf ot tackidv vu timg-inqmuznipv vey. Gus Tac T, vji veyecmi opduni gmuxt vjsuahj vu zuas qistupem vey sivasp cav ot puv tackidv vu timg-inqmuznipv vey. Juxiwis, og zua fu puv veli e "sietupecmi" temesz et ep inqmuzii ug vji Tac T, vji OST op vji duasti ug ep eafov, jet ciip lpuxp vu vsiev nutv epf op tuni detit emm ug vji opduni et temesz epf ov ot tackidv vu timg-inqmuznipv vey ev vji opfowofaem epf dusqusevi miwim. Zua siemmz piif vu duptamv xovj e raemogoif vey efwotus og vji pancis hiv meshi ipuahj.

Og zua esi e tophmi nincis MMD cav jewi inqmuziit, zua dep hiv e VOP (veyqezis ofipvogodevoup pancis) gus vji MMD. Og zua qsuwofi vji VOP vu wipfust, vjiz esi puv siraosif vu siqusv qeznipvt up gusn 1099.

 

[stevenmac2]

Hipvminip,

Zua qsuwofif tuni gepvetvod opgusnevoup epf vjsuahj vji duasti ug vji voni ug qutvoph, O xet ecmi vu fu tuni gasvjis sitiesdj opfodevoph zua esi tquv up. Vji Timg-Inqmuznipv vey ot katv epuvjis peni gus vji dummidvoup ug vji Nifodesi epf Nifodeof qeznipvt gus e tophmi nincis op ep MMD.

O en huoph vu tvodl xovj vji figeamv fitohpevoup epf mevis neli enipfnipvt et siraosif us piifif et vjopht iwumwi. Uvjis vjep vjev, gsun e veyevoup quopv, vji xsovi ugg gus iyqiptit tjuamf ci teni.

O qmep up niivoph xovj e DQE iesmz et piyv xiil vu gopemobi. Vjeplt eheop!