Originally posted by heygrassman
I have just talked with my accountant and he is very LLC positive. This is the route that I most likely take. There are some creative ways to handle you getting paid, dispersments vs. salary. Different states treat LLC's differently... you know the deal... dont take my advice.. seek the advice of an atty and cpa
I agree, every situation is different. If you are a single person LLC you are generally taxed as a proprietorship (schedule c), if you are an S corporation you are still taxed individually on the profits (if you or you and spouse are the sole owners).
So, if you are a one person LLC, you still just have to file one income tax return because the income is included on your 1040, if you form an S corporation or C corporation or partnership, you create a separate entity for tax purposes and require that that entity file it's own tax return. Even though the total tax might be the same, you will have to pay someone to prepare the return.
Is it worth it to be a Sub S? Definitely maybe - it all depends on your situation. Another thought, if you form an LLC, you can incorporate later with minimal tax consequences if you need to.
Bottom line, check with your accountant and attorney.