LLC & S Corporation?

[zeros]

Pardon my ignorance, but what is the benefit of having a LLC when filing a S Corporation. Extra benefits?

[Gary2]

I'm not sure whether you're asking "What are the benefits of forming an LLC that chooses to be taxed as an S-Corporation over just forming an S-corporation" or "What are the benefits of an LLC choosing to be taxed as an S-Corproration versus an LLC choosing to be taxed as a partnership or treated as a disregarded entity," or something else.

[zeros]

Benefits of Having an LLC and file as S Corporation?

I'm not sure whether you're asking "What are the benefits of forming an LLC that chooses to be taxed as an S-Corporation over just forming an S-corporation" or "What are the benefits of an LLC choosing to be taxed as an S-Corproration versus an LLC choosing to be taxed as a partnership or treated as a disregarded entity," or something else.

Thinking that filing as an "S" you have everything, don't you?

[Burke]

The biggest difference is that, if you organize as a single-member LLC, it is a disregarded entity and profits and losses pass through a Schedule C the same as an individual. Same for LLC organized and electing to be taxed as a partnership (Form 1065). Whereas an S-Corp must have officers/directors and pay a salary, filing all payroll forms, and file a Form 1120S. Whether this benefits your particular business must be evaluated at the beginning.

[John of PA]

For tax filings, there is no difference between an S Corp, and an LLC filing as an S Corp. Perhaps the state LLC laws may be of benefit over just being a corporation if there was a lawsuit. Each state is different. I am seeing more and more clients going the route of LLC taxed as an S Corp (advice from thier lawyer) becasue they don't want to have 100% of thier profit subject to SE tax. Thats fine as long as they are on a payroll for a reasonalbe salary. A salary of 1/4 of the annual profit is not reasonable.