LLC S - corp vs C - corp

[Helena-Arcane]

So I'll be becoming a model on MFC next month, using Onlyfans, and fansly.

I've applied for an LLC and was approved and am going to apply for an EIN number but I'm unsure as to whether I should be filing for an S - corp or a C - corp doing the things I'm doing.

One of my goals is to have verifiable income with this so a friend of mine with his own LLC has suggested s - corp. But honestly I'm not sure if I understand any of this well enough to make that decision.

Any advice?

 

[Helena-Arcane]

So I'll be becoming a model on MFC next month, using Onlyfans, and fansly.

I've applied for an LLC and was approved and am going to apply for an EIN number but I'm unsure as to whether I should be filing for an S - corp or a C - corp doing the things I'm doing.

One of my goals is to have verifiable income with this so a friend of mine with his own LLC has suggested s - corp. But honestly I'm not sure if I understand any of this well enough to make that decision.

Any advice?

Also forgot to add that I am currently a stripper at a local club

 

[bbbbadddd]

LLC is easiest and most straightforward. Biggest difference is how taxes roll up to you and liability to some degree. In the case of the LLC, if a single member LLC, it all rolls up to you and is reported on Schedule C. You need to be careful about keeping things completely separate for liability purposes since it's so close to you. I have several that I operate under now and fairly happy with that arrangement. There were some nice tax breaks provided under the last big round of tax changes.

S Corp is a more complicated partnership. I'm not personally familiar with how income is treated, generally through distributions to partners I believe, and always seemed more complicated to me if just a single entity, but search and you'll find information. The tax benefits seemed less so and more likely to be limited last time that I read things.

C Corp generally though not necessarily is for something larger. You need to have shares and a board and other complications. We did it for a small family business but seemed like a lot for something that small. It does most isolate you from liability and taxes (though if there's fraud that's easily pierced).

I'd say start as an LLC and then study up some on the differences and see what changes happen as far as taxes. For what you're doing I think that best fits. Unless maybe there's some clear tax advantage to some other way that appears. You don't have much in the way of liability to worry about. You still get all of the tax advantages for writing off expenses, insurance, et. al., that you don't have as an individual.

 

[cbhours]

I don't know much about the subject but I have heard that s-corps can reduce self employment taxes because the salary that you pay yourself from the s-corp is the only portion that is subject to self employment tax (generally about 15%). So its my understanding that if you make 200000 a year and you assign a salary to yourself of say 100000 then you don't have to pay self employment taxes on the remaining 100000 meaning you have saved 15k in taxes.

 

[cbhours]

I stumbled across this article this very informative article this morning: https://mattolpinski.com/articles/1099-to-scorp/

 

[beverlyHill]

I stumbled across this article this very informative article this morning: https://mattolpinski.com/articles/1099-to-scorp/

Are there any other similar articles on this topic?