LLC Or Sub S Corp
Can anyone explain the difference - I have been involved with Sub-S many times before in different ventures - - but I hear everyone here talking about the LLC so I figured I'd go that way as well - but surprise, surprise here in Florida I can get a corporation formed with corp kit etc.. for $99.00 yup pretty cheap and nothing hidden have done it before - but when I inquired about the LLC they want $349.00 So what's the difference and is there a difference? that would apply to a small REI - I'm feeling, just go with the Sub-S corp and save the up front additional fees - UNLESS there is a reason? <IMG SRC="images/forum/smilies/icon_confused.gif">
[ Edited by fire580 on Date 02/29/2004 ][ Edited by fire580 on Date 02/29/2004 ]
I also want to know the diference:
-- Why many in RE use LLC vs. S-Corp?
If for no other reason, the paperwork and records requirements of an LLC are much less stringent than with a corp.
If your records are not kept up properly, you lose your "corporate veil", and you can be personally sued for business liability. Less paperwork and records = less of a chance to mess it up and screw yourself.
There are other benefits, but I'll leave that to one more knowledgable than I.
G/L