Home: Message List - LLC vs. Incorporated???

Re: LLC vs. Incorporated???

Kulit629 — Sun, 28 Jun 2009 11:57:49 GMT

You may want to consider going to legalzoom.com, the website has and can do everything for you, they do a great job of explaining in understandable terms the differences and advantages all structures There is a free guide you can download in pdf format. Good luck.

Re: LLC vs. Incorporated???

harmon_smith — Fri, 12 Jun 2009 07:29:18 GMT

When deciding to incorporate, many entrepreneurs wonder which is better, LLC or corporation. When you're weighing an corporation versus an LLC, there are a number of factors you need to consider
The business model of LLCs forms the best business format for small business operators. LLCs are easy to operate and enjoy less regulation under state law.
For more information you can check this sitehttp://blog.clickandinc.com/.
There are several online services available that can help with incorporating your business in one state or several. I recommend you http://www.clickandinc.com/ who are business incorporation specialist.

Re: LLC vs. Incorporated???

harmon_smith — Fri, 12 Jun 2009 07:02:32 GMT

When
deciding to incorporate, many entrepreneurs wonder which is better, LLC or
corporation. When you're weighing an corporation versus an LLC, there are a
number of factors you need to consider

The
business model of LLCs forms the best business format for small business
operators. LLCs are easy to operate and enjoy less regulation under state law.

For more
information you can check this sitehttp://blog.clickandinc.com/.

There are
several online services available that can help with incorporating your
business in one state or several. I recommend you http://www.clickandinc.com/
who are business incorporation specialist.

Re: LLC vs. Incorporated???

harmon_smith — Fri, 12 Jun 2009 07:01:49 GMT

Re: LLC vs. Incorporated???

Elite1 — Sat, 22 Nov 2008 01:34:05 GMT

A Corp in AZ is required to file annual reports and maintain records of periodic business meetings. The annual reports have a filing fee attached to them. LLC's in this state are not subject to these guidelines. You may want to check with your accountant and lawyer to see what the regulation requirements are for your state.

Tanya
Elite Financial Services, LLC

Re: LLC vs. Incorporated???

kevhan — Fri, 21 Nov 2008 20:47:45 GMT

I would use a Sub S since you are a service company and would not have a great capital requirement. Take a market salary and the rest would be a dividend taxed at the lower rates for now anyway.

Pick a good name for your company and build goodwill because a tax practice will hold good value and you could get a 1-1.5 times billings for it when the day comes to retire and sell the business.

Re: LLC vs. Incorporated???

JDVTaxes — Fri, 21 Nov 2008 18:29:26 GMT

...wow...so much to consider here. This is great information...

So what do you think the best structure would be for a small personal income tax practice -
- One owner

- Eventually a handful of people working for me (employees vs. contractors?)

- Low overhead
- Expected taxable net profit

Re: LLC vs. Incorporated???

FacMan — Fri, 21 Nov 2008 18:16:16 GMT

I am able to deduct the insurance premiums and pension contributons on my personal return, so I get them one way or the other. My income is such that the med and ss payments aren't affected in any event. The big plus for me - I don't have to file two tax returns. I hate paperwork.

For myself and the others here, as a small business, what other benefits are there to S- or C-Corp over LLC?

Re: LLC vs. Incorporated???

kevhan — Fri, 21 Nov 2008 17:55:23 GMT

There are many disadvantages to filing a schedule C - some items cannot be deducted on the sch C that can be deducted on the Corp return - such as your health insurance and pension contribution. Thus the individual in effect will pay Medicare and maybe social security taxes on these amts since they do not reduce the sch C profit. In addition you cannot take a salary as the owner you take a draw. Having some separation of the business from your personal return has other advantages that are not all tax related.

Re: LLC vs. Incorporated???

kevhan — Fri, 21 Nov 2008 17:41:17 GMT

THANK YOU

An LLC under various rules can be either a partnership,corporation or a single member LLC. A LLC corporation could elect to be a sub S but really why would you do it.

If some one chose to be a sub S then I would just set up a C-Corp and elect S status. A corp is less expensive to set up and (as far as NYS is concerned) does not require you to publish the fact that you have become an LLC. So you have less cost and work avoiding the LLC. LLC 's offer many benefits but unless you really need them I would stay with a Sub S or a C-corp. A C-corp depending on the projected income can be managed effectively to reduce the possiblilty of dbl tax and also to help build working capital at a lower marginal tax rate then the personal rates. This gets involved with the planning but depending on the client it would be worth the cost. LLC partnerships are a great tool when you need to have disproportionate allocations and distributions which you cannot do in a Sub S Corp. They also allow distirbution of appreciated property to members without recognition of gains

Hope this helps

by the way do you do bookkeeping for your clients?

Kevin