Freelance Question

Out of context: Reply #12

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• skelly_b0

  HELLO KEV1N!

  Both a LLC and S-Corp have pass through income, meaning profits are seen as the shareholders' individual income. For a small one man operation they are practically the same thing from a tax point of view.

  I personally prefer the LLC since it requires no annual paperwork to maintain. Where a S-Corp I used to own required and annual reports along with annual fees. Big pain in the ass.

  Basically if you aren't large enough to justify a C-Corp (which is even more paperwork) I would recommend an LLC. Cheap and only need to file paperwork every 30 years or so.

  The advantage of all these over a sole-proprietor is the evil self-employment tax. With an LLC and a good accountant you can keep this to a minimum.

  skelly_b 0Permalink

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