One of the most important decisions every small business owner must make is whether to operate as an S Corporation (S-corp) or a Limited Liability Company (LLC.) Each comes with their own set of advantages and disadvantages, and understanding the difference between the two allows business owners to decide which structure best suits their needs.
In most cases, an LLC is much easier to manage from an administrative perspective. Typically, an LLC requires fewer state filings, forms, formal meetings, and documentation. The start-up costs are also, on average, less expensive than filing as an S-corp, which is attractive to smaller businesses operating on stricter budgets. However, an S-corp has more flexibility with how earnings are paid to owners, which is an attractive incentive particularly in regards to taxes. Owners may elect to divide earnings as wages/salaries or distributions. Wages and salaries are subject to FICA taxes for social security and Medicare, whereas distributions are not. Legal Advice For Business Owners
Having a trusted legal partner to offer guidance throughout this process allows you to focus on building your business instead of stressing over available options and mulling over mountains of paperwork. We offer the following services designed to support established and emerging business entities:
The attorneys at BSR Legal Group provide expert legal representation for those dealing with partnership disputes, employee conflict, fraud, and other issues pertaining to business law. Our top priority is to protect your investment, mitigate your losses, and hold accountable those who have compromised your reputation and financial security.
Contact BSR Legal Group to schedule your consultation.
The legal team at BSR Legal Group has built a reputation as one of Southwest Virginia’s preeminent law firms by providing our clients with expert legal representation in a variety of practice areas.
