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As a communications consultant, should I set my business up as an S Corp or sole proprietorship?
And why? I am the only person running the business.
Thank you in advance!
3 Answers
- Maria SweatfieldLv 41 decade agoFavorite Answer
A sole proprietorship is you, personally. All of your personal credit, assets, liabilities, etc. are accountable to the business. Your personal tax return is your business tax return. This could be easier to do or harder, depending on your circumstances.
A Limited Liability Corporation (LLC) has less personal liability than a sole proprietorship, and is easier to set up and costs less than an S corp.
Source(s): former business owner - Anonymous1 decade ago
LLC does provide some tax incentives, which usually is for 1-2 people, an S-Corp is more money and usually for 2-4 people. I would defiantly go down the corp. route that way if someone sues you they can only sue the business not you as a person too.
- HenryLv 71 decade ago
It's better to become an LLC. An LLC offers the same tax advantages as an S Corp but is cheaper and easier to setup.l
