S-corp vs LLC in Illinois

[Paul Cijunelis]

From a tax perspective, after consulting a CPA friend, these are pretty much the same. At this point I want to start up and incorporate but am unsure the legal differences.

I am forming a partnership (two people me and another)

Instead of taking two trips to the lawyers office, one to ask btwn Scorp and LLC and the next to get our paperwork drawn up for the actual partnership after incorporating, can anyone offer advice as to which is better to get started and get the company created?

[Frank Ponticelli]

I love this issue. From my vantage point as an attorney, it really doesn't matter which entity you use as you will most likely be protected if you are doing the right things w/ your corporation. The most important thing to do is make sure you are getting the best tax savings tied the corp structure you choose. Everything I have learned and know indicates that LLC are a better corporate structure from a tax prospective and for purposes of transferring property without any tax penalties, but as an attorney that doesn't do tax work I recommend that my client's talk to their accountant. On the issue of Series LLC vs. not, I have discussed this issue w/ many of colleagues we have typically recommend not doing the series as it seems to make things more complicated. Obviously the biggest issue is to sit down and have a discussion as one set of rules doesn't always apply to every person the same way based their goals. Great subject matter and I am always willing to learn and talk with other attorneys, tax professionals and investors.