I am trying to set up a company and need to decide whether to use an LLC or an S. Corp. What are the differences?

Question

I am trying to set up a company and need to decide whether to use an LLC or an S. Corp. What are the differences?

Answer

As a Franchise Attorney I can say the following. Corporations require more legal formalities, compared to an LLC, both to start and maintain. However an LLC cannot elect a fiscal year. There are various other tax considerations. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation