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Newbie Question, Please - S Corporation vs. LLC as S Corporation - Thanks!

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D

Dila

Guest
What is the difference between a Massachusetts Domestic Profit Corporation recognised as an S-Corporation (275 filing + 125 annual report) and a Massachusetts LImited Liability Company recognised as an S-Corporation (500 filing + 500 anuual report) ?

My wife and I are going to start a wholesale used automobile dealer business in partnership with my brother.
We are funding the start-up with equal amounts of money (50% from my wife and I + 50% from my brother).
I want to control 100% of the company. The income from the business will be split with the following allocation:
1/3 to my brother, 2/3 to my wife and I. Should my brother decide to leave the company, I will have to return the amount of his original investment.
In case of a divorce, I retain 100% or 2/3 of the company ownership. Income will be reinvested into the company and dispursed through periodic payments to the involved.

What is the best way to set-up the company diverting all company liability away from the personal assets of the involved while avoiding double taxation?

Thank you for shedding some light on this for me.
 


D

Dila

Guest
I realize that you, dear reader, may not be familiar with Mass law, so your expretise with the local laws of your state will be equally valuable. Thanks again.

TTT
 

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