business licenses...
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- gabriel2
For those of you freelancers out there that have business licenses, what type of corporation are you?
Corporation, Limited Partnership, Limited Liability Company, or Limited Liability Partnership?
Thanks!
- arthur0
Corporation
- version30
corp
inc'd by an umbrella, so i can diversify later
- Chadwick0
Multinational type 115S licensed corporation. I can pretty much buy your house and sell it to over 114 different countries and live off the property tax from it alone.
- gabriel20
if I have no plans of ever hiring anyone else would a sole proprietorship be enough? basically I just want to start writing off some of these damn software/hardware purchases I've been making for work.
- version30
becoming an llc will afford you that option and be the cheapest route
- Chadwick0
There may be a way that you can claim freelance related purchase tax writeoffs without having to do any type of formation. I'm pretty sure you can. Otherwise, a DBA, S-Corp or LLC from what I understand.
- mbr0
MBR Studios is an LLC. No, you don't have to put 'LLC' after the name.
LLC - liability coverage, quick and easy to get (I paid a lawyer $750 to write it up, but that was because I needed it done immediately), 'transparent' taxes
S Corp - what many small businesses did before there were LLCs (which are pretty new).
Liability coverage
Must have a 'board of directors', even if it's just you and a partner
Must have documented 'meetings'
Transparent taxingCorp - same as S Corp, but you are taxed twice, once at the company level, then once as personal income.
Only useful for large companiesMy accountant charges a minimum of something like $2k for LLCs and much more for C corps. Thankfully, because it's 'transparent' taxing, my companies income is my income (although I do have a partner).
http://www.lectlaw.com/files/buo…
http://www.nolo.com/article.cfm/…
- madirish0
very good info, mrb.
and yes, you can write-off and depreciate all your freelance-related purchases/ expenses as a sole proprietor. you do not *have* to be a registered LLC, LLP, SCorp, ect to do this.
now, if you are in the US (i think you are) there are state limitations and or restrictions to the extent this can be done. check into that. i have had a multi-state, int'l billing LLC, sole p., single corp, and they all have their benefits and negatives. i know a lot of people here on NT feel you can have this done (whichever you choose) for $100 over the internet or something, but personally (and from someone who has done this enough already) i would never do this and i think it will result in a 'get what you pay for' situation down the road.
do it right, consult both a legal and accounting rep to weigh your options for this decision, and pay them for it. that is what they do. would you be happy if all lawyers designed their own websites? probably not....
just my 2 cents....