Hello everybody; I know a lot about businesses but I don't know which is best for owning many websites. I am forming a S-Corp. for my marketing company and forming a LLC to hold my Investment properties but which one to form to run my websites under? C-Corp., S-Corp., or LLC? I would never do a Sole Proprietorship, so please don't even think about it. For those who know which is best for owning websites that bring in revenue, please voice which one to form. Thank you all; Kush
It depends on how much you make and what type of protection you think you might need. An S-corp, for example, allows you to not pay federal business tax. Instead, you (and any other shareholders) pay the profits on your personal income tax. Depending on what tax bracket you are in and how much your business makes, you could save or lose money this way. For this reason, s-corps may be more likely to face audits. Other than the pass-through of profit/loss, a s-corp is treated the same as a c-corp (meaning there are a lot more reporting requirements and formal rules). A llc also offers profit/loss pass through, but the structure is more flexible. If you are the sole owner (or have only a couple partners), I would suggest the llc in general. But it really depends on the specifics of the situation.
Thank you bluegrass Special; This will save me a lot of time, money, and going through stuff I didn't have to go through.
With an llc you won't have to hold board meetings with officers and minutes. You would have to do that with an s-corp or c-corp.