S-Corps
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- raybolger2
I'm going to be working from home soon, and my job told me to form an LLC for tax reasons, but my accountant buddy said Scorps were the way to go.
I need to take a business law class but does any one have a suggestion as to which is better?
thank you in advance :)
--I'm moving out of state, which is the main reason I have to do this
- OSFA0
I believe SCorps are better and easier for taxes. Allows you to include every money spent in materials, trips, etc...
- joyride0
go with what your accountant says, the company just wants to make sure you don't personally get sued... or wants to sue you at some point, get insurance!
- mg330
I can give you at least three lawyers I work with who are experts in forming S-Corps.
$145, $185, and $225 an hour, take your pick.
- -sputnik-0
if you don't plan on employing anyone, create it an llc. excellent for tax purposes, less paperwork and tax b.s. etc
i had an s corp years ago and i have an llc now, and the llc is far better for a self employed person of freelancer
- -sputnik-0
and i formed my llc online and only paid like $40 to register the name and make it official
- TheBlueOne0
S-Corp is better.
And not just because it almost sound like you're saying S-Corp-ion.
- TheBlueOne0
and i formed my llc online and only paid like $40 to register the name and make it official
-sputnik-
(Jul 10 07, 13:30)which service did you use and in what state did you um LLC?
- thenuge0
TheBlueOne - which site did you do this from and for what state?
- raybolger20
hmmm $40 does sound pretty nice :)
thanks for the info, I'll see what the accountant buddy of mine can swing,
- -sputnik-0
colorado secretary of state website. you fill it out online...it took like 10 minutes.
i've had it 2 years, my accountant loves it and has made tax season far easier. not to mention all the crap i deduct/depreciate each time. he himself has an llp (limited liability partnership) which is an option if you want to work w/a partner.
oh and you don't need to file for an EIN since it's just you and your SS works as an EIN (employer identification number). makes sense if you're alone ;)
- thenuge0
thanks for the info
- myobie0
i am an s corp because i intend to hire people soon
better for that
listen to the accountant or voice your opinions to them and see what they say...make them explain it until you decide which is best
- studderine0
well...umm...you can have a llc and have employees...
- raybolger20
thanks for the helpful info sputnik.
although SCORPion has a certain ring to it ;)
- material-10
a snail walks into a car dealer...
well you know the rest
- myobie0
yeah you can have employees as a sole proprietor as well, but it sucks
- studderine0
myobie the blue on your logo is off.
- mitee_0
i do DBA, doing business as. works fine for me i can deduct everything too. what advantages are there with S-Corp over DBA?
- madirish0
there is no barrier between your person and any suit for work done should that arise, so all personal assets, capital, property and dept is fair game for repayment sources. additionally, you are just considered a sole proprietor w/ DBA as you are not registering any entity w/ the state.
- mrbee28280
Pay the extra and do the corp with your state. It will cost a bit more and cost more at tax time but the benefits will outshine an LLC if you ever decide to hire someone or want to be 100% safe dealing with self employment tax in addition to you bracket.