S Corp or LLC?

Here's another thread that might help anyone get into this business and do it right.

Hi Mike,



My name is Kate Le from Leesburg, VA. Bob Gallner gave me your name as reference for DVDNow; he also gave me your blogsite which I've read with much interest. Thank you for setting that up. My brother Tony and I have ordered 2 machines and are in process of securing locations and getting the ball rolling on all the other fun start-up tasks. I do have a couple of questions that I hope you can answer for me. They relate to choosing the appropriate business entity for the DVD rental business.



I have done some research and have come to find that no one business entity is perfect. I am debating between an S-Corp and LLC at this point. I was wondering if you can give some insight on how you decided upon which entity to use. Also, do you pay yourself a salary from your entity? If so, did you come across something that helps determine what a "reasonable" salary would be for this business?



Any advice you can give would be greatly appreciated!



Thanks and regards,

Kate