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    2 Replies Latest reply on Jul 28, 2008 6:58 PM by Autoglassguru

    Illinois LLC Taxation Questions vs CORP

    Autoglassguru Newbie
      First, Id like to Introduce myself as a new member of the forum. My name is Kyle and Im in the process of opening an automotive based glass company providing installations and repairs, etc to the general public and on commercial accounts. Its a mobile based business that will do sales in shop locations as well as on the street.

      Second, Id like to thank anyone who responds, this has been something Ive looked into myself over the last few months though hearing a specific answer will really settle my fears. I appreciate anyone who spares there time to answer my question and I look forward to sharing my knowledge here when I can.

      With that said I have some questions regaurding LLC vs Corp and though my next step is to start contacting a few potential CPAs but I want to know what Im talking about when I go in.
      What Ive found is that it seems LLC favor my situation better than a Co might. My company will be owned by myself and another, essentially an even split partner. My understanding is that LLCs will allow us to act as the owners, officers and employees as well as sell stock in the company. I read on to find information that would leave me to believe we would be able to operate our company and pay ourselves as employees on a salary basis, and because the company is newer, we can within reason pay ourselves salaries while keeping the company at a loss/breakeven point due to continual expansion.

      If you can expand maybe on my options or give me a suggestion with support as to why so I can better understand as to which direction may be my best option for a company of my kind. It will start as a single shop with 3-4 mobile vehicles and eventually be expanded to multiple shops with several vehicles spread throughout the Chicago and surrounding area.
      I just want to be sure I set this company up under the proper category, and something I felt so sure of for so long is leaving me a little worried with this company's start just around the corner.

      Thanks again,
        • Re: Illinois LLC Taxation Questions vs CORP
          LUCKIEST Guide
          LLC Taxation Questions vs CORP, Welcome Kyle

          Everybody in business should have an Accountant, A Lawyer and an Insurance Agent.

          Talk to the professionals, Then talk to SCORE. SCORE is FREE.

          How soon do you plan on opening?? Do you have a Business Name??

          Good luck, LUCKIEST
            • Re: Illinois LLC Taxation Questions vs CORP
              Autoglassguru Newbie
              I plan on opening within the next 3 months. I have an insurance agent in the family and I have potentials already choosen I plan on sitting down with both for accounting and for legal questions and representation. I havent secured my business name but I have several, in which assuming they arent claimed first, that are still available. Basically Im looking for some outside advice, maybe someone else who opened an LLC or is very knowledgable who can tell me if my intial plan of LLC is my best option for saving not only the company money but myself money as well. Im not looking for the exact answers that I will get from the accountants and lawyers but more suggestions and insiders thoughts, fellow business owners, etc. I feel and have been told that some accountants, because of the fact that LLCs are fairly new and the constant change in laws, may deviate away from the idea because they are more comfortable with Corps. I would really like to be able to take advantage of tax breaks and advantages of LLCs and maybe someone could expand for me what the actual advantages of an LLC are over a Corp.
              Thanks, Kyle