As with any type of business creation, there will always be, to some extent, negative aspects associated with the creation. To date, there is no perfect form of business entity. When deciding which entity is best for a business, there are many things to consider. Before deciding on a business structure, some important points to consider are the legal and tax ramifications associated with your chosen entity. Another criterion to take into account are the costs linked to the type of entity. These costs include training fees as well as any ongoing administrative costs that may be incurred. (“Choose Your Business,” 2011) This article will focus on the limited liability company, commonly known as an LLC. Limited liability companies are a relatively new form of business structure. This took place in 1977, once Wyoming was the first state to consent to such an organization, which merged the tax benefits of a partnership with the limited liability benefits offered by corporations. It took more than a decade after this ruling for the Internal Revenue Service, or IRS, to rule that an LLC would be considered a partnership for federal taxes. During this time, none other than the state of Florida had introduced LLC laws. This was due to the uncertainties surrounding LLCs when it came to the entity's tax results. (Cartano, 2008) One of the tax issues that LLCs face, when it comes to taxation, is self-employment taxes. The ability of an S corporation to lower and sometimes completely eliminate self-employment taxes is one of the main reasons an LLC will be overlooked as an entity of choice. Independent work ... middle of paper ...... there is: CCH. Choose your business structure. (2011). Entrepreneur, retrieved from http://www.entrepreneur.com/article/38822-1Cody, Tom, Hopkins, Dem A., & Perlman, Lawrence A. (2007). Guide to limited liability companies. Chicago: CCH. Internal Revenue Service, (2011). Self-employment tax, Social Security and Medicare taxes) Retrieved from http://www.irs.gov/businesses/small/article/0,,id=98846,00.htmlMeade, Janet. (2006, June). Minimize the self-employment tax of the managing members of the LLC. The CPA Journal, retrieved from http://www.nysscpa.org/cpajournal/2006/606/essentials/p32.htm Mridula, B. (January 31, 2010). Taxation of self-employment in an SARL. Retrieved from http://www.brighthub.com/office/entrepreneurs/articles/62926.aspxTax Implications: LLC v. S Corporations. (January 8, 2008). Retrieved from http://www.hutchlaw.com/news-resources/library-detail.php?id=13