Explore BrainMass
Share

Explore BrainMass

    If limited liability companies (LLC) and S corporations are

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    If limited liability companies (LLC) and S corporations are both taxed as flow-through entities for tax purposes, why might an owner prefer one form over the other for tax purposes?
    List the tax factors supporting the decision to operate as either an LLC or S corporation.

    © BrainMass Inc. brainmass.com October 10, 2019, 4:26 am ad1c9bdddf
    https://brainmass.com/business/accounting/limited-liability-companies-llc-corporations-460376

    Solution Preview

    Many people prefer an S corporation because the owners go on payroll and have regular payroll taxes withheld, which act as an expense for the corporation and salary for the shareholder. However, there are also a number of advantages to having an LLC. In an LLC, there is no ...

    Solution Summary

    If limited liability companies (LLC) and S corporations are both taxed as flow-through entities for tax purposes, why might an owner prefer one form over the other for tax purposes?
    List the tax factors supporting the decision to operate as either an LLC or S corporation.

    $2.19