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    4 Replies Latest reply on Jun 2, 2009 6:02 AM by phanio

    Help: Inc. VS LLC...Need plain english!

    PFCJS1 Newbie

      Hello there...I am starting a painting business on the side as I am a full time firefighter and I know it has probably been asked a thousand times on here but I could not find any answers that defined that I am looking for, at least in terms I could understand! I am wondering what the best way to go is as far as my business becoming an Incorporated or an LLC? I am looking for the best tax advantages. It won't become a huge business just a few odd jobs a month to give me some spending cash on the side...as you'll know the government doesn't exactly like to pay firefighters that much!

       


      Thanks in advance for any help you guys can throw my way!
        • Re: Help: Inc. VS LLC...Need plain english!
          AAACONSULTNG1 Newbie
          Hello there. I am the CEO of AAA Business Consulting and am willing to help you start your painting business. I would like to speak with you further to explain the difference between Incorporation vs. LLC. Please give me more details about your business such as location, how many employees you plan to hire, your startup budget for marketing, legal documents and business filings. I can also email you a document explaining in detail the difference between Inc and LLC.

          Feel free to contact me to discuss startup and for a free phone consultation. I can help you with build a strong foundation for you company and give you the tools needed for growth.

          Thank you for your time. I look forward to speaking with you soon.

          Sincerely,

          Kanitra Simmons
          CEO
          AAA Business Consulting
          (916) 706-6722
          Email: aaabizcards@gmail.com
          • Re: Help: Inc. VS LLC...Need plain english!
            LUCKIEST Guide
            Help: Inc. VS LLC.

            Who are you?? Where are you?? Any firefighters also accountants??

            Try SCORE. SCORE is FREE both in person and online

            Good luck
            • Re: Help: Inc. VS LLC...Need plain english!
              RanksIntl Adventurer
              Hello!

              Trying to explain the differences...

              LLC: An LLC as I'm sure you know is a limited liability company. With an LLC you are going to get a level of liability protection (this refers to your personal assets including your home, car, personal finances, etc as well as protecting you personally in the case that any sort of legal issue presents itself). You won't get this protection with a sole proprietorship or a partnership...have you considered either of these options? The taxation of your LLC is going to vary by state though nut an advantage to this over a corporation is you won't be subject to double taxation (I'll explain double taxation below). When it comes tax time you are going to include whatever losses or earnings on your personal tax return. LLCs also mean less paperwork which is always a plus.

              Corporations: There are two different types of corporations. There is the S-Corp and there is the C-Corp, S-Corps are generally reserved for small businesses and new businesses. Both types of corporations are eligible to go public however with an S-Corp you are limited to a certain number of shareholder whereas with a C-Corp you can have an unlimited number of shareholders. S-Corps also don't have to deal with double taxation. With C-Corps you do face double taxation which is when both the corporation itself and the shareholders are taxed. Also, you are going to have an annual regimen which needs to be submitted including a meeting and minutes for your meeting.

              The costs are going to vary by state. I'm not certain how much you are looking to potentially expand your business but based on what you are saying your best bet may be a sole proprietorship which based on the state that you live in may be as simple as registering a $25 DBA(Doing Business As or fictitious name that you want to use for your business).

              Hope this helps! If you need any other assistance I specialize in small business start up and expansion so feel free to ask me questions!
              • Re: Help: Inc. VS LLC...Need plain english!
                phanio Pioneer
                Determining which is best for you depends on your current situation - you willingness to take on liabilites and your tax status. if there was one that was better for all companies - then their would only be one choice. Plus, even if you incororate or form an LLC - if you are a single memeber or shsreholder - the IRS will treat you as if you have not done either.

                Plain english - find a CPA and send an hour or two with him/her. This is your best option.

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