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Discussion in 'Business Operations' started by contourbs, Jul 12, 2004.
what are some of the ups and downs
I really need to incorporate myself. The ups are numerous.. Tax benifits, asset protection, there are many more good reasons. I can't think of many bad ones, other than possibly a higher initial start up cost and potentialy more paper work.. Find a COMPETENT Attorney and CPA and discuss the various entities' available to you like Limited Partnerships, Limited liable Companies, And Type "c" and type "s" corporations.. I would read "Own your own Corporation" by Garret Sutton before I made any desicion, then seek advice from the previously mentioned people. I hope that helps..
You should be a corp. No need to talk to atty's they are too high priced. Accounts (which I am), are better. Atty's know litigation, bean counters know tax, which you are going to face every year. There are S corps and C corps. Your Secretary of State's office will help you free of charge and are very friendly. The income from an S corp flows through to your 1040, and you pay income and self employment tax on any earnings. The C corp pays its own taxes, but any money you take out of the corp is also taxed on your 1040. Wages are taxed at your tax bracket, dividends are taxed at 15% (thanks President Bush!). Either way you are going to pay the same tax as a Sch. C on your 1040. The best corp used to be S, but with the reduction in dividend tax, the S and C are pretty close. Both still provide asset protection limited to the asset's of the corp, but this still does not replace the need for good liability insurance.
eshreve - give us the skinny on the LLC - I think that is a big one you did not mention. Pass through taxes?
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