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- As types of business entities, both the S Corp and the LLC have advantages and disadvantages
- Both both the S Corp and the LLC can be taxed as partnerships at the lowest possible rate, or as corporations, at a higher tax rate but with certain advantages such as paying yourself as an employee
- The LLC does not allow you to invest money; the S Corp does allow you to invest money
- The LLC is simpler and easier for many small business owners, allowing for quick decisions and simpler tax filing
- The S Corp requires formalities like annual meetings with minutes and requires corporate officers to sign off on corporate decisions.
- For most people, the LLC is recommended, but it may be important to seek professional advice when making this important decision.