Separate names with a comma.
Discussion in 'Business Operations' started by StBalor, Jan 31, 2007.
LLC Or "S"CORP And why?
I would go with an LLC. Most guys are LLC's or sole proprietors here and you should def go with at least an LLC to protect your assets and yourself. An S corp is a good idea also but they are a little more difficult to form. Both LLC's and S Corps are taxed at the same rate and they both have about the same pro's and cons. (transferbiltiy of ownership, life of business etc.) Im on this topic in my business class. Ill do some research and get back to you!
I'm S corp........main reason was to do with filing taxes per my accountant, details I don't remember
I'm an LLC. I asked my account which way to go. He said 'look at my business card, i am a LLC"
It seems like LLC is the way to go. Alot of people go with the INC because its been around so long and thats all they know. I see a ton of companies switch from Inc to LLC. LLC protects you just as much as a INC. Heck i think Molsen beer is even a LLC!
I told some customer that LLC stood for little landscape company.
An "S" corporation is the old way of doing things. There are very few difference that make the "S" corp. enticing. The LLC was created because of the small businesses and it is what you want to file as unless you have an attorney to file reports and stuff that are required for an "S" corp.
The reason you want to go w/ an S-corp is to avoid paying social security on all of your earnings. With an S-Corp you pay yourself a small salary(that you pay 15% social security on) then the rest of your profit can be shown as company profit and it is exempt from social security. The S-corp is not hard to form... my accountant did it for $500.
I second what Lawnworks said. There are definite savings to be had by becoming an S-corp, instead of an LLC. If you look at how much you'd save on your taxes as an S-corp compared to an LLC, that would tell you everything you needed to know. Any CPA would tell you that.
Thats why I'm a S corp
I was talking to my accountant about switching to LLC. my accountant suggested i go as "S" Corp and that's why i am asking. I did not fully understand "S" Corp.
You say to write yourself a check so you only pay SS taxes on the check. But technically is not all the profit your pay or earnings?
What if you need access to money you did not pay yourself with your weekly paycheck. Is it still accessible to you without any penalties?
Sorry if these are stupid questions, I may have more to come. just curious before i go this route.
Check out this site. It has good information and other resources.
P.S. This link should help answer your question.