Posted: 9/13/2012 6:11:47 AM EDT
| What is the easiest way to get a business on paper started? Wanting to know bout Corp., LLC, or single person LLC. Or can I just go down and apply for my business license. I will buying bulk and selling wholesale to retail stores. Looking for the best and easiest way to start up and file taxes right. So small business owners and lawyers plz chime in. |
| I had my CPA set up my S-Corp. I paid him about $450 to set it up. I asked him about an LLC and he said the tax write offs were better for an S-Corp vice an LLC. I made well over 6 figures last year and only ended up paying about 5k in taxes...soooo I would definitely suggest an S-Corp based off of how much income you are thinking you will actually be making with your business. |
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I had my CPA set up my S-Corp. I paid him about $450 to set it up. I asked him about an LLC and he said the tax write offs were better for an S-Corp vice an LLC. I made well over 6 figures last year and only ended up paying about 5k in taxes...soooo I would definitely suggest an S-Corp based off of how much income you are thinking you will actually be making with your business. There is no legal entity called an S-Corp. S-Corp and C-Corp are tax classifications. An LLC (a legal entity) can be taxed as either depending on your election with the IRS. It can also be taxed as a sole proprietor and a partnership. Your CPA may understand that but I have run into quite a few CPAs that have no idea how legal entities and tax classifications work. I had two tell me I would need to dissolve my LLC and create a corporation to be taxed as an S-Corp, including the one who has been doing our taxes. I just filed the appropriate form with the IRS myself and told him the next year we were no longer taxed as a partnership but as an S-Corp. |
5k on a six figure salary? You can't write off guns and ammo on your taxes!  Just kidding.. You can put it under personal security and business security.. 
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I had my CPA set up my S-Corp. I paid him about $450 to set it up. I asked him about an LLC and he said the tax write offs were better for an S-Corp vice an LLC. I made well over 6 figures last year and only ended up paying about 5k in taxes...soooo I would definitely suggest an S-Corp based off of how much income you are thinking you will actually be making with your business. |
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I had my CPA set up my S-Corp. I paid him about $450 to set it up. I asked him about an LLC and he said the tax write offs were better for an S-Corp vice an LLC. I made well over 6 figures last year and only ended up paying about 5k in taxes...soooo I would definitely suggest an S-Corp based off of how much income you are thinking you will actually be making with your business. There is no legal entity called an S-Corp. S-Corp and C-Corp are tax classifications. An LLC (a legal entity) can be taxed as either depending on your election with the IRS. It can also be taxed as a sole proprietor and a partnership. Your CPA may understand that but I have run into quite a few CPAs that have no idea how legal entities and tax classifications work. I had two tell me I would need to dissolve my LLC and create a corporation to be taxed as an S-Corp, including the one who has been doing our taxes. I just filed the appropriate form with the IRS myself and told him the next year we were no longer taxed as a partnership but as an S-Corp. What is the form...I'm in the process of setting up a corporation as well........... |
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I had my CPA set up my S-Corp. I paid him about $450 to set it up. I asked him about an LLC and he said the tax write offs were better for an S-Corp vice an LLC. I made well over 6 figures last year and only ended up paying about 5k in taxes...soooo I would definitely suggest an S-Corp based off of how much income you are thinking you will actually be making with your business. There is no legal entity called an S-Corp. S-Corp and C-Corp are tax classifications. An LLC (a legal entity) can be taxed as either depending on your election with the IRS. It can also be taxed as a sole proprietor and a partnership. Your CPA may understand that but I have run into quite a few CPAs that have no idea how legal entities and tax classifications work. I had two tell me I would need to dissolve my LLC and create a corporation to be taxed as an S-Corp, including the one who has been doing our taxes. I just filed the appropriate form with the IRS myself and told him the next year we were no longer taxed as a partnership but as an S-Corp. What is the form...I'm in the process of setting up a corporation as well........... It's IRS Form 2553. There are a few other requirements for S-Corp election. Be sure to read the form carefully and make sure it applies to your situation |
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I had my CPA set up my S-Corp. I paid him about $450 to set it up. I asked him about an LLC and he said the tax write offs were better for an S-Corp vice an LLC. I made well over 6 figures last year and only ended up paying about 5k in taxes...soooo I would definitely suggest an S-Corp based off of how much income you are thinking you will actually be making with your business. I find your CPA's advice interesting. Since the net taxable income of Partnerships, LLC's, and S-corp's all flow to your personal tax return, the end result should be the same under either. Only C-corps are taxed differently. |
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5k on a six figure salary? You can't write off guns and ammo on your taxes! Just kidding.. You can put it under personal security and business security..
It actually is a "Security Company" and I do write off multiple guns and ammo! 
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I had my CPA set up my S-Corp. I paid him about $450 to set it up. I asked him about an LLC and he said the tax write offs were better for an S-Corp vice an LLC. I made well over 6 figures last year and only ended up paying about 5k in taxes...soooo I would definitely suggest an S-Corp based off of how much income you are thinking you will actually be making with your business. I'm sorry I did not know that. Then it is a Corporation set up under the S-Corp tax classification.
I also forgot to mention that my business is registered in Florida...no state taxes. 
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I had my CPA set up my S-Corp. I paid him about $450 to set it up. I asked him about an LLC and he said the tax write offs were better for an S-Corp vice an LLC. I made well over 6 figures last year and only ended up paying about 5k in taxes...soooo I would definitely suggest an S-Corp based off of how much income you are thinking you will actually be making with your business. There is no legal entity called an S-Corp. S-Corp and C-Corp are tax classifications. An LLC (a legal entity) can be taxed as either depending on your election with the IRS. It can also be taxed as a sole proprietor and a partnership. Your CPA may understand that but I have run into quite a few CPAs that have no idea how legal entities and tax classifications work. I had two tell me I would need to dissolve my LLC and create a corporation to be taxed as an S-Corp, including the one who has been doing our taxes. I just filed the appropriate form with the IRS myself and told him the next year we were no longer taxed as a partnership but as an S-Corp. |
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I'm sorry I did not know that. Then it is a Corporation set up under the S-Corp tax classification.
I also forgot to mention that my business is registered in Florida...no state taxes.
In what state do you perform your business activities? Whats the reward for tax evasion? 10%? |
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I'm sorry I did not know that. Then it is a Corporation set up under the S-Corp tax classification.
I also forgot to mention that my business is registered in Florida...no state taxes.
In what state do you perform your business activities? Whats the reward for tax evasion? 10%? Usually, payment of taxes owed, plus penalties and interest with a nice stay in Club Fed.
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Lol I knew this would be someones response.... I was Audited last year and I was GTG. My CPA is a former IRS guy. A lot of contractors use him, he's definitely worth the money
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I'm sorry I did not know that. Then it is a Corporation set up under the S-Corp tax classification.
I also forgot to mention that my business is registered in Florida...no state taxes.
In what state do you perform your business activities? Whats the reward for tax evasion? 10%? Usually, payment of taxes owed, plus penalties and interest with a nice stay in Club Fed.
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Lol I knew this would be someones response.... I was Audited last year and I was GTG. My CPA is a former IRS guy. A lot of contractors use him, he's definitely worth the money Well, when you make vague and misleading statements its easy to arrive at an incorrect conclusion. Your S-corp tax election and state of incorporation has nothing to do with the amount of taxes you eventually paid. Where you earned the income was the deciding factor in your situation. |
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I would have thought that the state of incorporation does have something to do with the amount of taxes you pay. Florida = no state income tax or Georgia: 6% on income over $7,000.
Self-employment taxes. S corporations may have preferable self-employment taxes compared to the LLC because the owner can be treated as an employee and paid a reasonable salary. FICA taxes are withheld and paid on that amount. Corporate earnings after payment of the salary may be able to be treated as unearned income that is not subject to self-employment taxes. For more information and whether this might apply to your particular situation, please contact your accountant or tax adviser. The way I read that is that say I make 15k a month, yet only pay myself 8k that month then come time for taxes I would only be taxed on my income 8k and not the full 15k? Correct? With that said I am not an Accountant nor a CPA this is just my understanding of an S-Corp vs an LLC. Sorry if you thought I was being vague I was just simply saying that in my opinion to the original OP that an S-Corp would be worth it over an LLC. S-Corp vs LLC Quoted:
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Lol I knew this would be someones response.... I was Audited last year and I was GTG. My CPA is a former IRS guy. A lot of contractors use him, he's definitely worth the money Well, when you make vague and misleading statements its easy to arrive at an incorrect conclusion. Your S-corp tax election and state of incorporation has nothing to do with the amount of taxes you eventually paid. Where you earned the income was the deciding factor in your situation. |
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I would have thought that the state of incorporation does have something to do with the amount of taxes you pay. Florida = no state income tax or Georgia: 6% on income over $7,000. The state in which you earn the money dictates whether or not you pay state income taxes. If you earn the money in Florida, you pay no state income taxes. If you earn the money in Georgia, you pay Georgia income taxes. State of Incorporation has nothing to do with it. Quoted:
The way I read that is that say I make 15k a month, yet only pay myself 8k that month then come time for taxes I would only be taxed on my income 8k and not the full 15k? Correct? That is incorrect. As the owner of the business your income is the full 15K and you will pay federal and states taxes on the full 15K. Your quote about self-employment taxes is correct; but self-employment taxes are only one small component of the overall taxes that you pay. |
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My company is registered as a corporation thru the State of Georgia (Sec State Office). My licenses are thru the same. Filing as a corporation you shield yourself from personal liability according to the law. If you screw up and someone sues, they can only sue you for the corporate assets and not your personal stuff. This is where insurance is your friend also.
An S-Corp pertains to the tax structure of your business. As an S-Corp, any money we make is not taxed but passes down to our personal income taxes but we write off everything related to business expenditures. So in essence whatever the company makes my business partner and I report as personal income. As a C-Corp, you would have to pay standard corporate taxes on any money the company makes plus pay personal income taxes on your salary making it double taxation for a single owner business. To file as a corporation you need to file articles of incorporation, name your company, elect officers(Pres, Treasurer and Secretary) and pay the filing fee to Sec State. Whatever business you conduct you need the proper state licenses, county business license, and insurance. |