Taylor McPartland is President & Co-founder of FilmBreak (filmbreak.com). In this video he discusses the benefits of an LLC over an S-Corp.
When starting off your company there a couple of different ways you can take it right off the bat. You can choose to go with an LLC or you can choose to go the route of an S-Corp. For my company the FilmBreak, we chose to go with an LLC because of three basic reasons.
First of all it gives us a greater flexibility from the ownership team. Secondly it gives us freedom to distribute the profits as we see fit. If one owner invests 90% and one owner invest 10% we’re not restricted to give out 90% of the profits to one versus 10 to the other. We have more freedom to take into account work load and other issues like that.
And finally it gives us the freedom to choose who actually manages the company. So with an S-Corp only the officers can run the company. We have the freedom to delegate responsibility to other managers so that we can look towards the bigger picture if that might be the case. So there are absolutely pluses and minuses to both LLC’s and S-Corps. LLC worked for us. So it’s absolute worth looking into.