The kind folks at Intuit have posted this infographic on their blog this week that describes what a limited liability corporation is and how it stacks up to other kinds of corporate entities. It couldn’t come at a better time for my family, as my wife is considering expanding her own business and wants to investigate her options. LLCs are great if you want to limit the amount of bookkeeping you have to do and if you don’t mind paying self-employment taxes. A better choice for larger businesses is an S Corporation (which is what I have used over the past several decades) which has more books to keep but also more flexibility when it comes to how your income is taxed too.
Thanks Intuit for putting together a great amount of information in one place.