Curious if you folks have an opinion on this. I was just looking into creating an LLC S-corp and saw that there is a 15% passthrough deduction and then I read creating a Sole Proprietorship can claim a 20% deduction.
If Sole Proprietorships allow the extra 5% tax deduction, why are the LLC and S-corps so popular?
The only extra benefit for LLC's seem to be liability. I've heard that the E&O insurance we buy isn't worth much in terms of protection, so maybe the LLC liability protection would be worth giving up the additional 5%. But if someone makes 200k per year or builds a renewal business of substantial size that 5% extra can be real money.
BTW, I was looking at Legal Zoom and Incfile.com
I know I need to talk to an accountant but one thing I read is that accountants are like any profession, there are good ones and mediocre ones -- good advice and not-so-good advice.
Any opinions are appreciated.
If Sole Proprietorships allow the extra 5% tax deduction, why are the LLC and S-corps so popular?
The only extra benefit for LLC's seem to be liability. I've heard that the E&O insurance we buy isn't worth much in terms of protection, so maybe the LLC liability protection would be worth giving up the additional 5%. But if someone makes 200k per year or builds a renewal business of substantial size that 5% extra can be real money.
BTW, I was looking at Legal Zoom and Incfile.com
I know I need to talk to an accountant but one thing I read is that accountants are like any profession, there are good ones and mediocre ones -- good advice and not-so-good advice.
Any opinions are appreciated.