swarren
10-19-2017, 11:41 AM
I recently registered an LLC in my state. I quickly realized I needed a professional for my taxes, to ensure I have everything set up correctly. My intention is to operate as a SMLLC. I was recommended a CPA from someone I know well. They used this person for their own business, which they set up as an S-Corp for "reasons of liability protection" which made no sense to me.
When I called this CPA, she quickly threw out the idea of operating as an LLC because I need the "liability protection of an S-Corp". She essentially told me that S-Corps are how things are done now and that LLCs are a "fad from a few years ago".
It is my understanding that combined with a good insurance policy, an LLC provides you with good liability protection, as does an S-Corp and that the primary difference between the two structures is tax related. I can think of two high liability businesses (a child care center and a dirt work contractor) in my area, who operate as LLCs and have not been sued into oblivion. I am starting off small, and I don't believe that the extra level of complexity that an S-Corp brings is going to be worth the tax advantages, or the "extra liability protection", which I don't believe exists.
I suspect this CPA prefers S-Corps, because then I have to go to her to deal with taxes more frequently. Am I ignorant of something, or do I need to find someone that won't blow off my idea of operating as an LLC?
When I called this CPA, she quickly threw out the idea of operating as an LLC because I need the "liability protection of an S-Corp". She essentially told me that S-Corps are how things are done now and that LLCs are a "fad from a few years ago".
It is my understanding that combined with a good insurance policy, an LLC provides you with good liability protection, as does an S-Corp and that the primary difference between the two structures is tax related. I can think of two high liability businesses (a child care center and a dirt work contractor) in my area, who operate as LLCs and have not been sued into oblivion. I am starting off small, and I don't believe that the extra level of complexity that an S-Corp brings is going to be worth the tax advantages, or the "extra liability protection", which I don't believe exists.
I suspect this CPA prefers S-Corps, because then I have to go to her to deal with taxes more frequently. Am I ignorant of something, or do I need to find someone that won't blow off my idea of operating as an LLC?