Change from S Corp to LLC
Hi. Currently an S Corp with only ME for an employee. Small design/planning/renovation firm and someone wants to work with me. Not big enough to handle unemployment compensation; workers compensation; disability and more insurances and taxes. 1099 seems more reasonable. OR should I switch to an LLC to avoid all these taxes?
Really contemplating all this.
The benefits of being treated like an S-Corp is so you can minimize your personal liability if for some reason the business is ever sued you can avoid that person coming after your personal assets. Whether you are an S-Corp or an LLC I believe that your taxes are the same but I’m not sure. I recommend that you get in touch with a tax pro who can help you to weigh all of the options. Check out this article for help with locating a tax pro: https://fitsmallbusiness.com/how-to-find-a-quickbooks-proadvisor/.
All the Best-