Starting an S-Corp vs. LLC for tax purposes

[Stephanie McKay]

With the new tax laws, is it better to form a S-Corp for tax benefits vs. using an LLC?

[Fred Heller]

If I had it to do all over again I would do the LLC. I received some bad advice and went with an S-corp structure.

Not giving financial advice but I was informed that the LLC doesn't have any real tax advantages because all the income passes through to the owner(s). With the S-corp you pay yourself a salary of $X a year, and the rest stays with the S-corp.

The problem with the S-corp is it is very burdensome with regard to reporting and other regulations. And honestly, I'm not making enough money to justify the hassle of dealing with the S-Corp. I've actually been thinking of converting to an LLC.

So my two cents, and that's all it's worth, is that if you're not making a ton of money, start out with an LLC. You can always convert to an S-Corp down the road.