@diablovox wrote:
2. If our business income is not more than our W2 salaries, is there an advantage to classifying both our LLCs as S Corps? Or maybe just the multi-member LLC?
There could be a slight advantage in electing to be classified as an S corporation for federal income tax purposes, but there are also disadvantages (a few of which are somewhat technical).
One disadvantage is you would have to calculate a reasonable salary for services you provide to the corporation as you would be considered an employee of the corporation, rather than self-employed as you would be as a member of an LLC treated as a partnership.
An advantage would be that you might be able to avoid self-employment tax on part of the net income if you elected to be taxed as an S corporation.
Regardless, you should seek guidance from a local tax professional and/or legal counsel prior to making any decisions along this line.
