From LLC to INC


LawnSite Senior Member
What are the advantages and disadvantages when going to INC(S-Corp) from LLC? I am sole prop. I'm mainly concerned about filing, getting more(income tax) back if possible. I am also aware of the ability to offer shares to non members if I'm INC. I have been filing(standard joint) with my wife as a sole proprietor and we have been getting earned income, but wondered if going INC would hurt us or help us.

I know this is a question for a CPA, but was just wondering if anyone had any similar experiences that could help me out a little with some insight.



LawnSite Bronze Member
Greensboro NC
15 percent self employment tax.

with INC, you should be able to avoid pay yourself a reasonable salary based on the job you do.

The rest of the profit will trickle down and you will report it on your personal taxes, assuming you do the s-corp. C-corp you don't want.

the profits from the business you will just pay your normal tax rate as long as you pay yourself that reasonable salary I just mentioned.