I should start by saying I created an LLC solely for my on-the-side consulting, both for the tax benefits and whatever "corporate veil" protections it would provide. I'm not planning on ever adding investors or partners. I really doubt I'd ever have employees either.
From what I've read, the paperwork burden is significantly higher with a corporation vs an LLC for (AFAIK) no added benefits in my situation.
Based on the many blogs advocating single-member consultancies to work under an S-Corp, I'd imagine there are many folks out there in an identical position. I was hoping someone had created a cookie-cutter solution for a reasonable price.
Shoot me an email if you'd like to discuss this in depth. I'm interested in easing this burden for others, if possible.
S corporation status is good. It can save money on social security tax costs compared to a regular corporation or self-employment.
Paperwork burden may be slightly lower for an LLC. The LLC eliminates annual minutes for the Board of Directors and shareholders. Hint: this is, 99.9% of the time, a template Word document. In about 20 years of me being the sole shareholder of my own S corporation I have done something else (i.e., minutes other than these template annual documents) exactly zero times.
I find that people (whether owners or banks or other beings you interact with) sometimes have a bit of cognitive difficulty with the slight cross-species aspect of being an LLC but walking like a corporation.
So there you have my opinion. Nothing wrong either way. I favor a small extra amount of automated paperwork every year over dealing with cognitive dissonance in strangers’ brains. It’s not decisive but it is my preference.
To go full Reddit, I want a duck, not a horse dressed like a duck. :-)
Both systems work.
It’s what you do afterwards with your company that matters. E.g., what you are wrestling with right now.
I know of no cookie cutter solutions. Sorry. I manage this for a couple of people (bookkeeping, payroll, tax returns, etc.) in my firm and it is a thankless painful job.
