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There are two parts involved, taxes and liability advantages. There is a tax advantage in instances because getting an entity taxed as an S corporation allows owners to save money on self-employment taxes (which are 15.3% significantly $106,800 of earned income in 2009) on distributions of profit gains. It is very important to have a reasonable salary when may either an S corporation or an LLC taxed as an S business. Keeping receipts and good documents extra corporation information important thing with your company. You need he
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