Post a new topic
    1 Reply Latest reply on Mar 4, 2010 4:24 PM by MrDunhill2000

    LLC suggestions

    songwolffarm Adventurer
      I`m doing well with my business plan, as well as anyone can in these economical times, and have a simple question.
      The business itself, is for the most part dedicated to breeding, training, and racing Thoroughbreds although there will be Foundation Appaloosas, Falabellas, and Gypsy Vanners as well. Outside of the horse aspect we`ll be growing our own food organically, which will include beef, and eggs and may eventually branch out into distribution of that organic food.
      What would anyone suggest as far as an LLC? I know that an INC would keep us personally not liable for issues within the business, but what other reasons would this be beneficial, and would there be benefits to Double Taxation?
      There`s more I need to work on, but I haven`t gotten to that point yet, which is a Marketing Plan. Anyone willing to help me on that is appreciated.
      I`m in a hurry to finish this plan and get funding as I`ve been out of work for 4 years, there are no jobs here
        • Re: LLC suggestions
          MrDunhill2000 Newbie

          There are no benefits to double-taxation. But the double-taxation issue can be avoided if you file an S-election, which in effect converts the corporation for tax purposes into an S corporation. However, not all corporations are eligible to make an S election, so if you are considering this option you should discuss with your attorney or tax accountant. There are some benefits to using a corporation -- they are easy to form and maintain, the capital structure is very simple, and the formation costs are generally very low (in most instances less than forming an LLC). An LLC on the other hand, provides better flexibility for capital and management structure, which makes it an ideal form if you plan to take on angel investors who usually will want specifically negotiated management rights and liquidation preferences. Really the best form for you will depend on your situation so you should consult with your attorney and tax accountant. You should not try to make the decision yourself -- it could end up costing you a lot of money in the end.