I live in Florida and I am about to start a 100% online store that will allow people to trade items. I was wondering which will provide the best protection for me, a Single Member LLC or a S-Corp. I have never filed taxes and don't have a hugh budget so which do you think is the best for me?
Protection is given by both entities. The difference is really how you want to run the business. There are pros and cons. I went with S Corp as you are not subject to employment tax as much as LLCs. So, you can pay yourself some reasonable amount as a webmaster and take the rest of the revenue as dividends which are not subject to employment tax. Please do speak with an accountant as you may have other considerations that warrant an LLC.
Thanks for the reply, I am just torn between the two. I have been told both would be fine, but S Corp have a lot more history and court rulings especially for single member S corps. If I may ask, were did you get your Articles of Incorporation and Bylaws? Did you make them yourself, purchase some, or just use the ones provided by the state?
Did you use the incorporation services or just buy the forms and do it yourself? I just wasn't sure if the Articles contained all the indemnification clauses and stuff like that? Where the documents detailed and cover alot of stuff?
used the services. My main reason for S-corp was the tax implication of employment tax. Plain and simple.