LLC vs Corporation: how should I register a restaurant with 3 owners?

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Craig Smalley, Tax Professional

@cwseapa • 07/29/15 This answer was first published on 07/29/15. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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It really all depends on a couple of things. If all of the owners are going to be active in the business, and devote more than 500 hours to the business, be best to form a limited liability company, taxed as an S-Corporation. If the owners of the business are not going to dedicate more than 500 hours per year to the business, it would be best if you were an LLC tax as a partnership. You should talk to a tax professional, about the different ways that you should set up your new business.

Craig W Smalley EA - Admitted to Practice before the Internal Revenue Service

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