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Can an S corp be single member? What are the drawbacks to using an S corp as opposed to an LLC?
by jawmes8 3y ago
Can an S corp be single member? What are the drawbacks to using an S corp as opposed to an LLC?
- brntsllvn 3y agoS Corp is just a tax filing status. Your legal entity remains an LLC. The benefit of S Corp tax status is that you pay yourself a dividend in addition to your income. They are taxed differently. The drawback is you now have a payroll obligation. An LLC can be single member. An LLC with S Corp tax status cam also be single member. There's a lot of info about S Corp status online. Hopefully this puts the strategy on your radar for more investigation.
- jawmes8 3y agoThank you! That is helpful to know.