Question Re: LLC VS DBA- I reside in IL (chicago), I have a company that subcontracts construction work.?

Question

I applied for EIN but was told by IRS I could do LLC, corporation or sole proprietorship ? I am confused to these titles and wante dto know if anyone had any advice as to which is better from a tax standpoint. I want my business assests to be separate from my personal assets in case of losses, financial difficulty, etc. I also want limited liability to what I can be sued for. I am totally confused as to what I should register as. I am sole member/owner.What should I do?

Answer 1

Either LLC or corporation for limited liability.  If you decide to go the corp route, elect subchapter S for tax advantages and simplicity.