Legal Question in Tax Law in New York

Re: Which Business Structure Is Better?

With both the S Corp and LLC forms you can achieve single-taxation of your income (as opposed to the double-taxation afforded C Corps). Generally speaking there is less paperwork in forming an LLC as to an S Corp but in the end it's pretty much a wash because an LLC will need an operating agreement which a Corp of any type need not have. In terms of who handles the paperwork, you'll have a registered agent in any case -- but they don't handle any paperwork for you unless you are sued in which case they will receive service of process against you if you can't otherwise be found. As for the drafting and filing of the statutory papers, and the drafting of the ancillary corporate documents, that is typically handled by a lawyer. But if you're going into the IT business you'll have a lawyer anyway because of all the IP (patent, TM, copyright, etc.), security, etc. issues you'll confront -- not to mention your transactional stuff.