Why did you form an S-corp?

1 Reply

I'm trying to remember why I decided to form an S-corp and I'm having a hard time...

... Because payroll taxes are murder...

  • But I do get to claim SEP-IRA contributions as an expense...
  • My personal assets are protected to an extent... Although, I've read that LLCs can protect your personal assets to the same extent... I don't actually know.

I run an ecommerce business and ran into legal troubles before... but I'm still having a hard time figuring out why I decided S-corp entity would be a better fit than LLC... I formed the corporation about 3 years ago and wondering if I should re-evaluate that decision...

Why did you decide to form an S-corp? Or, why did you decide to form an LLC (if you're the only shareholder)?

Hearing from other business owners may help me sort this out..

Originally posted by @Jihan Shareef:

I'm trying to remember why I decided to form an S-corp and I'm having a hard time...

... Because payroll taxes are murder...

  • But I do get to claim SEP-IRA contributions as an expense...
  • My personal assets are protected to an extent... Although, I've read that LLCs can protect your personal assets to the same extent... I don't actually know.

I run an ecommerce business and ran into legal troubles before... but I'm still having a hard time figuring out why I decided S-corp entity would be a better fit than LLC... I formed the corporation about 3 years ago and wondering if I should re-evaluate that decision...

Why did you decide to form an S-corp? Or, why did you decide to form an LLC (if you're the only shareholder)?

Hearing from other business owners may help me sort this out..

For most people who invest in real estate an LLC is superior by far. It is hard to know what your considerations were that went into your decision 3 years ago.

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