Wondering whether to choose an LLC or a corporation?

Both offer distinct benefits. An LLC provides liability protection, ensuring owners aren’t personally liable for company debts or lawsuits. This shields personal assets like homes and savings.
Flexibility is another perk. Owners can manage the LLC themselves or hire a manager. They can also choose how to be taxed: as a sole proprietorship, partnership, S corporation, or C corporation. LLCs generally have fewer administrative and compliance requirements than corporations, making paperwork less burdensome. LLCs also benefit from pass-through taxation, meaning the business itself doesn’t pay federal income tax. Instead, profits and losses flow through to the owners, who report them on personal tax returns, avoiding double taxation.

While these advantages are significant, there are more to consider. At PFSS, we can help determine if an LLC is right for you and your business needs. Next, we’ll explore the benefits of opening a corporation. Contact us today for our expert advice!