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Thread: Your own business

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    God/dess leilanicandy's Avatar
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    Default Your own business

    Is it better to have a s- corporation on a regular corporations. When dealing with exotic business. Especially when hiring other people.
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    Featured Member Hello_Kitty27's Avatar
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    Default Re: Your own business

    I believe an LLC is the way to go. S-Corporations have more restrictions. Each has different rules & regulations, depending on the state the business is in. A good wesbite is:

    www.entrepreneur.com - lots of info about starting businesses

    www.ysn.com - used to be a good site, but it appears they've re-done it and ost the old material. It's the website related to the book "Secrets of the Young & Successful" ....maybe the good old resources and chats will get back up.

    www.nolo.com - law info - including starting adult entertainment businesses....only one or two articles, but maybe they can point you in the right direction.






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    Senior Member DanMorris95156's Avatar
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    Default Re: Your own business

    A couple of other items to note. LLCs are self-employment income for working managers whereas in an S-Corp - excess earnings for owners above base wages are exempt from self employment or social security taxes. This difference can exceed $10k per year. A hefty penalty for the unwary (and profitable). Also, depends if you ever want other owners. A single member LLC is a disregarded entity for federal tax purposes (meaing you file a form schedule C and hence may not achieve that which you are looking for).

    Contact a responsible and talented tax/business advisor (along with self study) and probably a good attorney to weigh the benefits and costs of each version.

    In most states - an S-Corp is probably preferred over a C-Corp although there are reasons and times to be a C-Corp.

    Regards,

    Dan
    Daniel D. Morris, CPA
    [email protected]

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    Default Re: Your own business

    ^^^ I agree with Dan that among the options of an LLC vs an s-corp versus a c-corp, they all have their individual strentgths and weaknesses. Choosing the most advantageous option varies with A) the total amount of annual revenue being generated, B) the number types of different 'sources' of that revenue, C) the number and types of 'business expenses' involved in generating that revenue, D) the types of 'fringe benefits' you'd like to provide for yourself (and any 'partners' or 'employees'), and even E) the particular state you reside in.

    Personally, I have an LLC based in a different state than the one I live in.

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    Featured Member scorpio's Avatar
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    Default Re: Your own business

    a single person LLC is very expensive to form, and you will be very sorry come tax time. Go with the S-Corp.

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    God/dess sassysummer's Avatar
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    Default Re: Your own business

    i disagree scorpio.

    i have an llc..cost me all of $175 in wa state...and we've never had a problem during tax time. i think llc is probably the least expensive and easiest to form.





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    God/dess Casual Observer's Avatar
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    Default Re: Your own business

    Having had both an S-Corp and now an LLC, I agree--LLC is frequently the way to go, and your accountant can help you in that regard.

    I paid way, way more in tax as an S-Corp than I will as an LLC.
    Idealism is fine, but as it approaches reality, the costs become prohibitive.

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