LLC's or Business Corporation?

[murksiderock]

I need everyone here with expertise in starting and running your own business, all input will be helpful! I'm a novice, I don't come from financial literacy or experience in this, so I need help knowing how to begin this journey as a small business owner...

What's the difference between LLC and business Corp, and why should I elect one over the other? I have two different things I want to start, don't know if I need to create them separately or if they can be under the same umbrella...

Appreciate all info and advice in advance!

--Rodney

 

[Ethnic Vagina Finder]

ChatGTP is free. So is Gemini and Claude

Google is also free.

 

[Ed MOTHERFUCKING G]

LLCs are a pass thru entity and reports on it's owner's (be it an individual or a corporation) taxes for taxability. The formation of the LLC provides some protection of liability and other legal protections [i'm not an attorney], but the core difference is taxation. Corporations' net income is taxed at the corporate tax rate, and distributions to owners are taxed at the owners' individual tax rate.

Corporations can have many LLCs, in your case you could have "murksiderock Enterprises Inc." and that could have "Rodney Ventures LLC" and "Colibreh Repaholics LLC" doing different things.

I'm a finance guy but not a business owner, so I'm sure others will have thoughts on the advantages.

 

[VegetasHairline]

ChatGTP is free. So is Gemini and Claude

Google is also free.

Maybe he wants to talk to actual people who have dealt with this kind of stuff.

 

[RickyDiBiase]

Maybe he wants to talk to actual people who have dealt with this kind of stuff.

Ignore that cracka

to OP

Might be a state by state basis, but out here I chose an LLC because it's much more user friendly in terms of working out the taxes end of what you go going on. Overall I deal with a lot less unnecessary paperwork.

 

[dj-method-x]

What kind of corps? There are S-Corps and C-Corps. Most people just need an LLC. Then when you are making enough money you probably want to look into filing your taxes for that LLC as an S-Corp to save on taxes since you won't have to pay the self employment tax as an S-Corp. C-Corps are powerful but they are subject to the corporate income tax and could result in double taxation. For most people an LLC taxed as an S-Corp is the most they'll need.

 

[Traveler]

What kind of corps? There are S-Corps and C-Corps. Most people just need an LLC. Then when you are making enough money you probably want to look into filing your taxes for that LLC as an S-Corp to save on taxes since you won't have to pay the self employment tax as an S-Corp. C-Corps are powerful but they are subject to the corporate income tax and could result in double taxation. For most people an LLC taxed as an S-Corp is the most they'll need.

Yup this is excellent advice. I churned my llc to an scorp to avoid that tax. It hit hard.

 

[Ethnic Vagina Finder]

Ignore that cracka

to OP

Might be a state by state basis, but out here I chose an LLC because it's much more user friendly in terms of working out the taxes end of what you go going on. Overall I deal with a lot less unnecessary paperwork.

I’m not a cracka. I already verified my race so that don’t work anymore.

The question was basic and your logic makes no sense.

 

[RickyDiBiase]

I’m not a cracka. I already verified my race so that don’t work anymore.

The question was basic and your logic makes no sense.

 

[Buddy]

From my experience, B-Corps have a higher hurdle. I have an LLC but got some friends with B-Corps... they move a l lot different. Focused on seed rounds, anfd shyt.


I've personally never liked the thought of begging for money from people more power than me. I got tge blueprint, nut I don't want it. That could change in the future tho. Thats the difference in my realm.