Should I be an LLC or an S-Corporation?

Do I Need a Separate Bank Account for My Business?
May 23, 2017

I get this question all the time.  The legal side is a question for a lawyer, not a CPA.   From a tax perspective at the federal level, an LLC is not a recognized entity with the IRS. The IRS recognizes (has a tax form) for an S-Corp, C-Corp, Partnership, Sole Proprietor, etc.  An LLC can choose to be any of these types of entities as it is being formed at the state level. So, if you are worried about legal ramifications, contact your lawyer.  From a tax perspective, a discussion on the type of business, number of owners, the tax circumstances of the individuals, those types of items come into play and need to be discussed on a case by case basis.

Jo Hagan, CPA
Jo Hagan, CPA
Jo Hagan is the visionary and founder behind Barefoot Accounting, Inc. She's been in private practice helping businesses like yours grow, understand their numbers, handle tax issues, and more for over 15 years. As a mom, wife, and business owner, Jo understands the struggles business owners and entrepreneurs face, and she has a passion for helping people understand what they need to know in order to be successful in business!

Leave a Reply

Your email address will not be published. Required fields are marked *