I am a new member to Work It. I quit my job after my son was born (3 years ago) and have been freelancing ever since. I am a startup consultant - I help companies and entrepreneurs start businesses, write business plans, raise capital etc. Anyway, I am thinking about incorporating a business to channel my income through rather than get paid directly. Any thoughts on S Corp's vs. LLC's?
I'm not an expert but from my experience I think given your situation and the type of business you are looking to set up, the more common structure is LLC. In your case you are actually indifferent between S Corp and LLC. Both of these structures have tax advantages (only one layer of taxes). S Corp has a limitation whereby you can only issue one class of stock, which i don't think matters to you. So I would ask your attorney what structure would be easier (and therefore cheaper) to set up for your purposes. Good luck!
I'm pretty new to it, but have done business classes on corporations and the like, as well as research in setting up my own company, and I agree with the other posters-an LLC would be the most sensible way to set up for tax purposes and the like. It's generally less expensive to set up, and like Jenorama said, unless you're paying employees it makes more sense. Of course, even then, there are plenty of LLC's that have payrolled employees. Good luck!