Here's our situation. My spouse and I both have exes that like to send their lawyers anytime they think there is some extra money to be gotten from us. Between attorney's fees and the courts it always costs us almost as much as we earned when we pick up a little additional income. My spouse has an opportunity (and really wants) to do some part time work for a friend of ours. It was suggested we form a company and do it as a contract instead. Given our situation it appears as if even forming an LLC taxed an an S Corp will still pass all of the income to our W2s.
If we form and then take taxes as a C Corp we would only have disbursements from the company show up on our W2s and anything we spent as a part of the company would be expenses.
Is it much harder to be an LLC taxed as a Corporation? Is it worth the extra effort? Thoughts?