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(moved) LLC vs S Corp - Also: What state?

Discussion in 'Business & Tax Advice' started by skylark516, Nov 12, 2009.

  1. skylark516

    skylark516 Regular Member

    Aug 29, 2009
    Likes Received:
    K. What is better? A LLC or an S Corp?

    I've heard a lot of good things about nevada and delaware.

    What do you guys think is the best state to incorporate in?
  2. sparky123

    sparky123 Registered Member

    Oct 8, 2009
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    If you wish to go IPO in the near future, go with S Corp. If you plan to stay private and have more control of your start up company, go LLC. Although both can be converted later on.

    Most people will chose Nevada for it's easy filings but for better privacy laws, go with Delaware. The cost for Nevada is about $100 filing fee whereas Delaware is in the couple hundreds. People are playing around with Florida, which is where I'm not familiar with.
    Last edited: Nov 12, 2009
  3. sugarpimp

    sugarpimp Registered Member

    Jul 17, 2008
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    Virtual World
    Really depends on what kind of business you want to do with it, in general I would advice you to set up a LLC based in Delware or Nevada, like sparky123 wrote before.
  4. zen19

    zen19 Elite Member

    Mar 31, 2009
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    LOL ya right
    International Waters
    OP your thread has been moved. Please check next time that you are posting in the appropriate subforum.
  5. ddawg0169

    ddawg0169 Newbie

    Mar 18, 2009
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    For tax purposes, an LLC can be treated exactly like an S-Corp, so unless you're planning on issuing stock, there's no significant difference between the two. As far as best combination of protection friendly and low filing fees, go with Nevada, Delaware, or Wyoming.

    Another option to consider is a Series LLC. It basically allows you to have as many LLC's as you want, but only have to pay one filing fee. This makes it easier to get a bunch of EIN's, which means getting banned ain't no thang :) Only 9 states recognize the Series LLC, Delaware and Nevada being among them.

    Remember, if you live in 1 state and setup an LLC/S-Corp in another, open your bank accounts in the state where you setup. Otherwise, your home state could say that you operated out of it and charge you filing fees for your company.
  6. mbceo

    mbceo Junior Member

    Feb 9, 2009
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    This is why you should legal advice from someone that knows what they are talking about, like an accountant or a lawyer, not some yahoos on a BB.

    You can not sell public shares (IPO) with an S-Corp. It is really for partnerships.

    And I am guessing you are not going to "blow this thing up" that big since you are messing around in this forum.

    Go LLC, and set it up in your own state. There is not much difference in the states and costs. It is the easiest.