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Charlie O'NealAn S corp is just like an LLC in that the taxes passes right through to your personal income and you are taxed there. from my understanding you can be taxed at a personal rate of up to about 30% for capital gains but if if you through a S corp it is normally around 15% not real sure about the LLC rate. The example was given using Deleware's system for running a company. The laws there are different from other states in regards to building a corp. b/c of the laws and regulations. Since I live in PA it is worth my while to set up in Deleware b/c of the tax differences and then just rent out a P.O. Box in Deleware as my business address. All this information is based on speaking with a couple of friends that have either done this in the past or currently doing it right now. As I stated in the earlier post I would need to speak with a coperate lawyer to make sure that what I am being told is correct and legal.