Question about Forming an LLC vs. an S Corp

[ASUCHRIS]

I've been working independently for a couple companies over the last year or so, and am paying taxes at a very high rate. I've been told by several people that I can save a lot by either creating an LLC or an S Corp.

I've heard lots of pros and cons about both, and imagine many here had to make the same decision. There is plenty of info on the internet, but I'd prefer to get opinions from the board. Thanks in advance.

 

[AZZenny]

Been involved in both. I would definitely say if it's just you or you and a partner, go LLC -- all the medical folks and lawyers I know in solo or small-group practice go that route. (I got into the S Corp thing when we set up a large, multi-specialty practice 20 years ago, and at the time, there were weird restrictions on mixing medical and non-medical people as equal partners that we had to work around.)

The bookkeeping, and the legal filing requirements on an annual basis in order to meet all state and federal requirements is significantly more for the S Corp -- not like a huge hassle, but definitely a nuisance. The LLC I was a partner in for 2-3 years was much, much simpler.