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Is there any advantage to an LLC over an S-Corp?
Currently I have (my firm) set up as an S-Corp, do
you think I took the right route?
A: Wow! That's a pretty broad question!
Having said that, I generally recommend an S-corporation
for earning income, and an LLC for owning assets. There
are exceptions, of course, but the S-corp. (or LLC taxed
as an S-corp.) lets you divide your income into salary
(subject to FICA) and dividend distributions (not
subject to FICA).
Having said THAT, as a business grows, it may make sense
to add entities to segregate income for specific
purposes. For example, you might use an S-corp. to
minimize FICA taxes on salary and a C-corp. to offer
employee benefits, like the Section 105 medical expense
reimbursement plan, that you can't offer through the
S-corp.
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