The Electrical Contractor Network

ECN Electrical Forum
Discussion Forums for Electricians, Inspectors and Related Professionals

Books, Tools and Test Equipment for Electrical and Construction Trades

Register Now!

Register Now!

We want your input!


2017 NEC and Related
2017 NEC
Now Available!

Recent Posts
International Wire Colour Codes
by Texas_Ranger
Today at 08:24 AM
Son of Sparky
by HotLine1
10/20/16 07:43 PM
Speaking of Plugmold ...
by gfretwell
10/17/16 02:37 PM
Broken battery charger? Check for cobwebs!
by gfretwell
10/17/16 02:30 PM
230 or 345 kV transmission lines?
by annemarie1
10/12/16 01:23 PM
New in the Gallery:
12.5A through 0.75mm˛ flex (just out of curiosity)
Shout Box

Top Posters (30 Days)
gfretwell 11
HotLine1 6
renosteinke 6
ghost307 5
Potseal 4
Who's Online
1 registered (Tjia1981), 193 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Topic Options
Rate This Topic
#157269 - 09/29/05 11:31 AM LLC or "S" corp
carjam Offline

Registered: 05/06/05
Posts: 12
Loc: GrandBlanc, MI U.S.A.
Hey guys, I am getting set up to go on my own. I am uncertain on how to set up my company. Do you guys know what the difference is between an LLC and an "S" Corp?

Business, Office, Estimating, Legal:
#157270 - 09/29/05 11:48 AM Re: LLC or "S" corp
giddonah Offline

Registered: 06/03/05
Posts: 50
Loc: UT

#157271 - 11/05/05 06:32 AM Re: LLC or "S" corp
VinceR Offline

Registered: 04/24/05
Posts: 35
Loc: Edgewood, WA, USA
carjam, it has been a while and I am not a lawyer. The basic difference is that with an LLC enables to you to avoid paying both corporate income tax AND personal income tax. Your account should be able to give you the advice you need to make the right decision.

#157272 - 11/06/05 01:52 PM Re: LLC or "S" corp
Tesla Offline

Registered: 06/16/04
Posts: 1280
Loc: Sacramento, CA
There are a number of instant incorporation outfits. Here’s what one says:

The high points….read the whole thing…

An LLC is not required to hold annual meetings or to keep formal minutes, while an S Corporation is required to do so.

LLC members can split profits/losses in any way they choose. In an S Corporation, shareholders must receive dividends according to the number of shares that they own, regardless of the amount of effort put into the business.

An LLC can be owned by any combination of individuals or business entities. Only United States citizens and resident aliens may own an S Corporation .Other entities generally may not own an S Corporation.

S Corporation shareholders pay Medicare and Social Security tax only on money received as wages or salary, but not on profits received as dividends or that stay within the company. Under certain conditions, LLC members may need to pay Social Security and Medicare taxes on the entire amount of LLC profits.


ECN Electrical Forums - sponsored by Electrical Contractor Network - Electrical and Code Related Discussion for Electrical Contractors, Electricians, Inspectors, Instructors, Engineers and other related Professionals