Legal Question in Tax Law in California

advantage to llc

my small company is now a sole propriotorship will have a better tax advantage to go to a llc,? we own our home, and are in our 7th. year of business,our income is 80,000 TO 100,000 for the last two years and we expect to increase that slightly this year. i will be 70 my next birthday. thank you


Asked on 10/10/06, 2:10 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: advantage to llc

Assuming that you are stating net income figures, you would probably better off operating as a subchapter S corporation. An S corporation is just as easy to manage and operate as an LLC and you would have less exposure to self employment tax. Corporations also offer the same asset protection as an LLC.

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Answered on 10/10/06, 2:44 pm


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