LLC Tax Election

February 25, 2023
by a searcher from The University of Chicago - Booth School of Business in New York, NY, USA
Hi all, first time business acquirer here and have a specific question about LLC's tax election. I am thinking about buying an online business with a large seller financing note paid across 3 years.
I understand many people favor an LLC electing to be taxed as S-corp to avoid double taxation. However in this case because I will have to be using most of the profits in first 3 yrs to pay down seller debt instead of distributing any cash flow to myself, wouldn't it make more sense to elect the LLC as C-corp for tax purposes and benefit from lower corporate tax rate (21%) on pre-tax income so I can pay down the debt faster, then later convert to a S-corp tax election when it comes the time to take distribution from the business?
Any advice is greatly appreciated!
from The University of Chicago in Chicago, IL, USA
Further, make sure banks will allow for 3-yr seller note.
from Seton Hall University in Morristown, NJ 07960, USA