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LLC! No, No scorp!. No, No LLC!

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    #46
    Originally posted by Unregistered
    the tax implications have been discussed so i will skip that.

    however, since he is a medical lab I am suprised he is not a corp. Strictly speaking from a liablity point of view. I hope he talked to an attorney, first .
    Can you explain little further please. What do you mean by liability point of view?

    He did talk to an attorney but not accountant before he registered as LLC. Here is why I think LLC may be a better choice from legal point of view. If there is a situation where IRS comes in disallowes scorp (for not meeting formalities for example) it would be regular C corp and then, many times in health care industry, it could be a Personal Corporation subject to 35% rate. That may be just one reason why LLC is better selection as there are no formalities like S corp. Many small businesses do not follow formalities of S corp like having meeting on a annula basis etc.

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