I am starting a new business as a health gym and can't decide whether to incorporate as an S or as an LLC. If I use LLC status, can the business pay for such benefits as health insurance and other employee perks?
An LLC can provide the same benefits as an S corporation. Unless you plan on raising capital by issuing shares of stock or bonds, there is probably no advantage to selecting corporate status rather than LLC status. Basically, a corporation and the LLC are taxed the same, have the same protection from individual liability, and offer the same benefits. Except for the advantage a corporation has in financing through shares, mentioned above, about the only difference between the two forms of business is that the LLC is easier to form and there is less formality in maintaining it.
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