Accounting & Tax Services For Limited Company and LLC
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LLC, S Corp & C Corp — Frequently Asked Questions
What is the difference between an S corp and a C corp?
It’s a tax classification, not a different company type. A C corp pays corporate tax on profits (currently 21%) and shareholders pay tax again on dividends. An S corp passes profits straight to owners’ personal returns — no corporate-level tax — but is limited to 100 shareholders who must be US persons.
Should my LLC elect S corp status?
Once profits reach roughly $40,000+, an S corp election (IRS Form 2553) can cut self-employment tax by letting you split income between salary and distributions. Try our free S-Corp Tax Calculator to estimate your saving, then we’ll file the election if it makes sense.
What is Form 2553?
Form 2553 is the IRS election that turns your LLC or corporation into an S corporation for tax purposes. It must generally be filed within 2 months and 15 days of the start of the tax year it should take effect. We prepare and file it as part of our US tax services.
LLC or limited company — which do I need?
An LLC is the US structure; a limited company is the UK equivalent. Where you should form depends on where you live, sell and bank. We register companies in the US (Wyoming LLCs for non-residents), the UK and the UAE — and advise which fits your situation before you spend a penny.