What is the best tariff structure for a small consulting company (LLC? S-Corp?)?
Answers:
We fire up by assuming that your "small consulting company" is a contemporary activity. If not, after here are a plethora of charge issues which must be address.
If your state permit a business to fix as a Limited Liability Company ("LLC"), next that will almost other be your first choice. An LLC is preferable (usually) to an S Corporation for two reason:
(1) an LLC can cash its see to be tax as a 'overrun through' or 'association taxable as a corporation' more repeatedly than an S Corp; and
(2) the accounting issues of an LLC are much easier and accordingly smaller quantity costly than those of an S Corp (which have issues approaching 'inside cause', 'outside starting place', etc.).
However, at hand are a few cases where on earth an S Corp is preferable. Obviously, if your state does not security an LLC, afterwards an S Corp will probably be your choice. Also, if you intend to promise internationally, an S Corp may be preferable, since most of the world understand "corporation" but not "LLC"s.
Finally, consult a well-versed attorney and accountant concerning the issue of a "personal service corporation". If your consulting company is classified as such, consequently you will enjoy other excise issues to consider.
Good luck on your business!
There is not a soul answer - depends on numerous factor indefinite contained by your sound out. Hire a business attorney and accountant in your state and receive it done right, instead of guessing. Doing it right initially is cheaper and better than fixing mistakes then.
An LLC have a simplier import tax structure.
You can swot more in the order of an LLC here