The primary advantage for a South Dakota limited liability company (LLC) to elect S-Corporation status involves the self-employment tax. An S-Corporation's officers/shareholders who provide more than minimal services to the LLC and receive (or are entitled to receive) compensation are subject to the self-employment tax. These payments are considered wages. On the other hand, non-wage compensation (deriving from dividends or distributions) is not subject to the self-employment tax.
What is the advantage of electing S-Corporation status for your South Dakota LLC?
About Swier Law Firm's Business & Corporate Practice Group
Swier Law Firm's Business & Corporate Practice Group handles the following types of cases:
- Cyber Law and Cyber Security
- Limited Liability Companies (LLCs)
- General Partnerships and Limited Liability Partnerships
- Joint Ventures and Strategic Alliances
- C Corporations and S Corporations
- Trademarks and Copyrights
- Real Estate
- Wind Energy Transactions
- Corporate Governance
- Corporate Dissolution
- Conducting Internal Investigations for Boards, Board Committees and General Counsel
- Preparing, Revising and Updating Governance and Compliance Materials, including Bylaws,
Committee Charters, and Compliance Policies.
To learn more about business and corporate legal issues in South Dakota, contact Swier Law Firm.