LLC/S-corp question...

Discussion in 'Business Operations' started by jsf343, May 31, 2010.

  1. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    To those of you who are LLC or S-corp I have a few questions regarding how YOU are paid.

    1. which is better to do pay yourself a salary or hourly wage? what are some of the advantages or dis-advantages?

    2. You can take that off on taxes yes?

    3. is there a company nationwide that anyone would recommend that is cheaper?


    Thanks for your time,

    Jeff
     
  2. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    ugggg.... nobody has any info on this?
     
  3. lilweeds

    lilweeds LawnSite Senior Member
    Posts: 595

    I used a local lawyer the second time around to make sure it was done right.

    The first one I had to dissolve for some issues with sub contractors.

    You can pay your self however you want. The LLC is completely pass through won't be much different from a SP.

    The s corp you must pay a salary.
     
  4. wbw

    wbw LawnSite Fanatic
    Posts: 5,457

    I am not a lawyer nor an accountant. As I understand it both llc and S-corp are both pass through entities as far as the IRS is concerned. This means that all income/losses are passed on to you personally. The purpose of these entities is to primarily protect you from personal liability arising from the course of business. There are advantages to each and you will honestly need profession guidance to choose correctly. For example if your taxable income is $100,000.00 you could benefit from paying yourself some of this through dividends and avoiding paying social security and medicare on part of your income. However, each situation is different and YOU WILL NEED PROFESSIONAL GUIDANCE.
     
  5. jsf343

    jsf343 LawnSite Bronze Member
    Posts: 1,767

    yes professional guidence.

    I have been trying to read up more on it and I just get a headache, I am looking for protection, but also thee best tax advantages I can find. The more I look and read I think LLC seems to be the best way to go.

    Thanks for the input to both of you.




    anyone else who has gone through this care to sound off?
     
  6. lilweeds

    lilweeds LawnSite Senior Member
    Posts: 595

    LLC seems to be great for a smaller business, as you get larger the S-corp has some advantages.
     
  7. fl-landscapes

    fl-landscapes LawnSite Silver Member
    Posts: 2,542

    I am an s-corp. I pay my self a salary and take AAA dividends as bonuses which are basically drawing dividends on profits you have paid taxes on. My accountant handles the details.
     

Share This Page