Whats the difference between an LLC an LLP and an S corp?
Joe asked:
I have a friend who is running a catering business. Right now it is just a sole propriatorship with no employees. She’s been thinking of becomming an LLC, but isn’t sure if it is the best option for her or not. An LLC, LLP and S Corp all seem very similar, what’s the difference between them?
I have a friend who is running a catering business. Right now it is just a sole propriatorship with no employees. She’s been thinking of becomming an LLC, but isn’t sure if it is the best option for her or not. An LLC, LLP and S Corp all seem very similar, what’s the difference between them?
December 16th, 2011 at 12:38 pm
It all depends on the type of buss. If she has no partners or anything then she does not need the LLP. LLC from my understanding are primarily for real estate holings and firms. If she runs a service company of some sort like myself then an S-Corp should be fine. The only real way to know is to speak to a lawyer in you area. Hope I was helpful!!