LLC’s vs. S-Corps: Everything You Need to Know

llc vs s-corp

An LLC or “Limited Liability Company” is a type of legal entity that can be used to provide you with legal protection in the event your business gets sued. An S-Corporation is a tax election that can be used to tell the IRS that you want to be taxed a certain way.

An S-Corporation is NOT a legal entity – this is something that many people don’t understand. You don’t form an S-Corporation. You form a C-Corporation or an LLC, and then you make the S-Corp election if you want to be taxed as an S-Corporation.

I realize this is confusing. Take a minute to watch this video where I talk more about how this works and whether you should make an S-Corporation tax election for your online business.

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Hawthorn Law is a Document Filing Service and CANNOT provide you with any legal or financial advice. The information provided on this website is designed to provide information in regards to the legal aspects of online business. However, it is presented with the understanding that Hawthorn Law is not engaged in rendering legal, accounting or other professional services. If legal advice or other professional assistance is required, the services of a licensed attorney, tax professional or financial advisor should be sought.