What’s the best way to legally setup your new business for tax purposes? Many accountants and tax professionals will say an LLC is better than an S-corp, but when asked why they can’t provide a solid reason why. This clip (taken from the January 15, 2014 TSBDC CEO Series) should explain why one is more advantageous than the other here in Tennessee.
A question from the audience was directed at the panel featuring a number of local professionals in the areas of accounting, law and tax. Ken White, CFO of Whittington, Jones & Rudert, CPAs, LLC responded by saying LLC’s are more advantageous in Tennessee because distributions to owners are not taxable whereas with S-corps they are.
David Elliott, Director at Grant, Konvalinka & Harrison, P.C. added that companies incorporated in Tennessee could be moved if they expand and start doing volumes of business in other states. He added there may be advantages to being incorporated in another state should that be the case.
This information is presented as is, and should not be considered legal advice. Consult with a professional to determine the best course of action for your situation.