Geared Up Issue 2 2015 | Page 36

Determining Your Business Structure: __ __ S Corp ? LLC or T he business structure you choose will have legal and tax implications so it’s important to research which is best for you and your long-term goals. In this article, we will compare a Limited Liability Company (LLC) to an S corporation. LLC 2015 Issue 1 2 | GearedUp An LLC is a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. The“owners”of an LLC are referred to as “members.”Depending on the state, the members can consist of a single individual (one owner), two or more individuals, corporations or other LLCs. Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all profits and losses are