Discussion:New Company starting as LLC, then electing S-Corp

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{{ForumReplyPost|UserID=Bottom Line|Date=18 January 2007|Text=Don't know anything about GA law but an LLC and a Corp are two different types of entities. Don't think you can use the "corp" name for an LLC (but every state is different). The real question is which type of entity is best.}} {{ForumReplyPost|UserID=Bottom Line|Date=18 January 2007|Text=Don't know anything about GA law but an LLC and a Corp are two different types of entities. Don't think you can use the "corp" name for an LLC (but every state is different). The real question is which type of entity is best.}}
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 +{{ForumReplyPost|UserID=DianeOffutt|Date=18 January 2007|Text=LLC is easier to form and S-Corp status will allow profits free of SE taxation (client will be taking a reasonable salary. I will check the GA law before filing the articles of organization and go from there.
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 +Thanks for replying Bottom Line.
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 +Diane Offutt}}

Revision as of 05:01, 18 January 2007

Discussion Forum Index --> Tax Questions --> New Company starting as LLC, then electing S-Corp

DianeOffutt (talk|edits) said:

18 January 2007
Hi all,

I have a client, we are applying for an LLC then filing Form 2553 to elect S-Corp status. My question, when we file for LLC, since we know we will elect S-Corp shouldn't we file as CORP and the legal name of the company will be XYZ, Corp.

I am not sure if we must start with XYZ, LLC, then AFTER we file Form 2553 we can change the company name to XYZ, Corp.

Not sure if I am making too much of this, maybe either way is ok...but thought I would run it by this forum to see if anyone else has had the experience.

Thanks for all your help,

Diane Offutt Woodstock, Georgia

Bottom Line (talk|edits) said:

18 January 2007
Don't know anything about GA law but an LLC and a Corp are two different types of entities. Don't think you can use the "corp" name for an LLC (but every state is different). The real question is which type of entity is best.

DianeOffutt (talk|edits) said:

18 January 2007
LLC is easier to form and S-Corp status will allow profits free of SE taxation (client will be taking a reasonable salary. I will check the GA law before filing the articles of organization and go from there.

Thanks for replying Bottom Line.

Diane Offutt

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