LLC or S-Corp to set up a small Consulting Firm?

I've been working in the healthcare software consulting industry for the last 5 years as a W-2 Hourly employee of a mid-sized consulting firm. I'm coming to end the of a contract at the end of this month, and feel I have the personal network and industry contacts to set out on my own avoiding the hefty cut that my current firm takes.

I'd like to start my own personal firm which would only include myself for now, but potentially 5-10 people in the future if it goes well. I would like to set myself up in a good situation to go 1099 either directly through hospital clients or potentially through a small pass-through firm (corp-to-corp) if necessary due to master service agreements the hospital may already have in place.

My primary question is whether it makes more sense to set this type of thing up through an LLC vs. an S-corp, and what major factors to consider when making that decision. Any and all advice is appreciated. Thanks in advance.

I'm located in Denver, CO with potential clients all over the country.


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