Option 2: LLC or Limited Liability CorporationBy John Hazard | Posted 2011-04-25 Email Print
Many VAR and reseller businesses start with an individual providing IT services to clients and getting paid and cashing a check. But just how that individual cashes the check will determine how much of the money he gets to keep come April 15. Here's a look at the best tax structures for VAR businesses.
2. LLC or Limited Liability Corporation
Often considered the best option for small business owners, this doesn’t offer all the advantages and tax deferrals of a corporation, but it is simpler and cheaper.
Significantly, an LLC also offers an extra layer of protection from law suits and audits. Many business owners like the LLC option because it the filing rules are the same as personal income taxes and there are no quarterly reporting requirements like those of a corporation.