My partner and I are starting a small business, which is mainly service based and will require minimal expenses. We are deciding on either registering as an LLC or an S corp. Which is the best way to go for tax purposes. Kepping in mind that this will not be the only form of our each invidual income, we will both be under emplyoment elsewhere at the same time. Thus will we still need to pay self emplyoment tax on top of income tax?
does an S corp work like a coporation where a corporate tax must be paid each year, regardless of the business' profit or loss?
Thank you!