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Which is better a corporation or an LLC?

Forming an LLC or a corporation will allow you to take advantage of limited personal liability for business obligations. LLCs are favored by small, owner-managed businesses that want flexibility without a lot of corporate formality. Corporations are a good choice for a business that plans to seek outside investment.

Can an LLC be an S Corp in Texas?

How do I convert my Texas LLC to an S Corp? Converting an LLC to an S Corporation is a two-step process. First, you file Form 8832 with the IRS to have your LLC taxed as a corporation. Then, you file Form 2253 with the IRS to elect S Corporation status.

What is the difference between an LLC and a corporation in Texas?

Corporations are owned by shareholders, managed by a board of directors, and administered by officers. LLCs are owned by members and managed by members, managers, or both. An LP is a partnership of one or more limited partners and one or more general partners. For more information, see Selecting a Business Structure.

Is an LLC a corporation?

A Limited Liability Company (LLC) is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owners tax return (a disregarded entity).

How does an LLC elect an S Corp status in Texas?

Once you have set up a regular Texas corporation (C-Corp) with the State of Texas, to become an S-Corp you must make an election with IRS in order for your corporation to be recognized as an S-corporation. This form is called IRS Form 2553. It must be filled out and faxed or mailed to IRS.

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