USA LLC or Corporation Help??

[grindhouse]

I have read that as a corporation you basically get Double taxed, it seems like you would have rto pay youself out a certain amount as the owner. But because a LLC is the newest entity, it doesn't look like there is tax structure created for LLC's yet. So you have to decide to be taxed as a S Corp, C Corp, or Partnership. If your business is not a partnership though, then you're forced to be taxed as a corporation, meaning Double Taxed.
I'm trying to figure out which would be better for my company. We hire subcontractors, not employees (if that matters).

I appreciate any insight please!!

 

[smallbushelp]

In addition to how an entity is taxed, you may want to consider the formalities required to maintain the entity and the structure of ownership that you'll have. Corporations (both C and S) require formal meetings and resolutions for most corporate actions like establishing bank accounts and purchasing assets. Also, corporations have a board of directors that is responsible for making major decisions and then hires officers or managers to run the company. Owners are shareholders and receive distributions when the entity has profits. The corporation is taxed on its profits and the owners are taxed when they take distributions.

Limited liability companies, on the other hand, don't require formal meetings and resolutions but they should observe some formality in documenting major business decisions. An LLC can be managed by one or more of its members and does not have a board of directors. Owners have capital accounts and can take draws regardless of profit. The LLC is not taxed at all but owners are taxed on the entities profits even it they take no draws.