What should I use to start up a cleaning busines, an LLC, or S Corp?

UPDATED: Oct 2, 2022

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What should I use to start up a cleaning busines, an LLC, or S Corp?

I am starting a residential cleaning business and would like to form an LLC or S Corp. Which would be better tax wise? Thank you, C Moyer

Asked on July 24, 2019 under Business Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

They are 100% identical tax wise. Both an S-corp and an LLC which you create electing (choosing) "partnership," or "disregarded," or "pass through" tax treatment (any of those terms may be used) is a "disregarded" entity where there is no "double taxation"--i.e. no taxation at the "corporate" or business level. Instead, profits and losses "pass through" the entity to you, and are taxed only once, as part of your own income.
Of the two, there are slightly less formalities and slightly less paperwork with LLCs, making them moderately the better choice.

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