Corporation

[TAX]

What is better? Should LLC be converted to corporation or treated as Corp by filing 8832?

LLC was setup in 2008 and return has been filed. One person LLC. Consulting business with placing people.

[Gretel]

I don't think it's a matter of better. It much depends of what is important for the owner, if they have employees, if they want to do payroll, if he wants to have benefits, just to name a few. Then, if Corp., the decision needs to be made between C-Corp and S-Corp.

Or are just thinking about liability issues? One speaker ones said that in some states it gives more protection doing both, first forming a LLC and then select to be Corporation. This question only a lawyer can answer.