Originally Posted by eperez:
Hi, I am planning to open a child care facility (not in my home). I have asked my accountant for advice on whether I should incorporate or be an LLC but have not received an answer.
My concern is based on having to pay income taxes on my personal returns as opposed to having the company pay for them. My understanding is that an LLC can elect to be a corporation. How would that work? I would prefer to receive a regular pay check, like any employee with taxes withdrawn and have the company responsible for the company's income taxes. What do you suggest?
Any advice/direction would be most appreciated!
Yes, you can set up an LLC as an S or C corporation. It only makes sense to do this if you are making a lot of money. That's because if you are the employee of the corporation the corporation will have to pay federal and state unemployment taxes and it will need to purchase workers compensation insurance for you. These are additional costs that wouldn't occur if you were a single person LLC or self employed. So, you need to ask your accountant to show you what the tax consequences would be of this decision. I say, remain self employed.