Understanding Your LLC and S Corp
📝Introduction:
What’s Better for Your NCS Business: An LLC or an LLC with an S Corp?
Explained in a simplified manner.
Imagine your Newborn Care Specialist (NCS) business is like a lemonade stand. You want to protect it, grow it, and maybe even save money while running it. That’s where something called a business structure comes in.
Two of the most popular “umbrellas” to put over your lemonade stand are:
☂️ LLC (Limited Liability Company)
☂️ LLC with an S Corp Election
Let’s break these down like we’re sharing lemonade on a sunny day.
#Understanding Your LLC and S Corp
🍋 What is an LLC?
An LLC is like building a little fence around your lemonade stand. If someone trips on a rock near your stand and gets hurt, they can’t come take your bike or your piggy bank at home—just your business stuff. It keeps your personal things safe.
Why people like it:
✅ Easy to start
✅ Protects your personal stuff
✅ You pay taxes once, like a regular person
#Understanding Your LLC and S Corp
🍋🍋 What is an LLC with an S Corp?
Now, imagine you still have that lemonade stand, but now you’re selling lots of lemonade—maybe even hiring a helper. The government says, “Hey! You’re kind of like a company now!”
So, you choose something called S Corp election—it’s like putting a superhero cape on your LLC.
Why people do this:
✅ You still get protection like an LLC
✅ But now you can pay yourself a salary and possibly save on taxes
#Understanding Your LLC and S Corp
👶 So…Which One is Better for NCS Businesses?
If you’re just getting started or working part-time, a plain LLC is probably just fine. It’s simple, safe, and affordable.
But if your NCS business is growing—maybe you’re making $50,000 or more a year—an LLC with an S Corp might help you keep more of your money by paying less in certain taxes.
#Understanding Your LLC and S Corp
💡 Quick Tip for Grown-Ups:
- LLC only = simple, great for beginners
- LLC with S Corp = great if you’re growing fast and want to save on taxes
(But it’s more paperwork and you’ll need a payroll system!)
#Understanding Your LLC and S Corp
🧸 Final Thought
Your NCS business is like your baby—you want to keep it safe and help it grow. Start with the little fence (LLC), and when it gets big enough, think about giving it a superhero cape (S Corp).
Always talk to a grown-up who knows numbers (an accountant!) before you decide
#Understanding Your LLC and S Corp
📌 Note: The SBA provides an in-depth overview of various business structures, including LLCs and S-Corps, and how to choose the right one for your business. Learn more here: SBA Business Structure Guide.
Posted in: NCS Tips and Hints
Nancy Hamm cancs, caisc
Founder of Gentle Venture’s Training Center
Contact Ms. Hamm at [email protected] or 602-412-8497
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