Originally posted by Unregistered
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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