LLC, sole proprietaty or wing it?
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- kerus
what do most of you freelancers do?
or does it really vary from state to state?very confusing stuff
- TheBlueOne0
Incorporate - S Corp.
- Actually, depends. Take with an accountant.TheBlueOne
- I mean "talk" not "take"...TheBlueOne
- pixellette0
LLC
- ribit0
I was going to have a rant here about you US Americans who don't bother to tell us what country you are talking about when you are obviously talking about just one country... but I can't be bothered...
- Isn't there only one?TheBlueOne
- I kid! I kiiiid!TheBlueOne
- hell, yeahcapsize
- skelly_b0
Definitely helps to get an accountant first. Mine helped me setup an LLC cheap and quick. For most, an S-Corp isn't worth the money or effort.
- ribit0
We had an S-Corp in the US (until we moved it to UK), and I had setup a Limited company in the UK that was billing the US corp for services (and was VAT registered here in UK) but have found its all too much paperwork (even with the advantage of claiming VAT tax back on computers 'n stuff)... so what I'm getting at... Consider going for the arrangement that is the simplest/least time consuming/most efficient... you can always scale up later...
- zuna0
i have had an s-corporation since 1999. I LOVE IT. its a no-brainer! as a sole proprietor you are taxed 2 times. once as YOUR tax id - SS# and again on your sole proprietorship. its hell... i have been there and hated it. get an accountant. i write off all equipment, business expenses, cell phone, a percentage of my home since i have a home office, any business rent, server space, etc etc.
the s-corporation / llc is the best way to really start making real wealth.- Exactly. That's why I said S Corp in the first place...TheBlueOne
- completely untrue. only an idiot would pay double taxes.Faction18
- I second that Faction. And an LLC is expensive in CASoler
- tkmeister0
i know a lot of big agencies don't like hiring a freelancer as LLC or S-corp. is there any way around that? i would love to get 1099 instead of W2 and max out my SEP again.
- zuna0
that is a huge pain, tk... it totally depends on the agency - some prefer you to have a EIN number it saves them loads of paper work... others want your SS# to process the 1099. either way i push it all through my s-corp.
- seed0
I've never heard that sole proprietors are taxed twice:
"Any income that is earned from the business is considered your income. The sole proprietorship itself is not separately taxed on its income. Instead, the sole proprietor reports business income and expenses on his or her own tax return. This means that the net income from the business is taxed only once."
- right, but having the business tied to your person is dangerous. LLC is spearatebulletfactory
- Faction180
if you plan on making more than 100K/year, go LLC. its easy, cheap, and very effective.
- kerus0
i plan on making bajillions per year but naturally that wont happen.
ill have to try to find an accountant i guess hehe
- acescence0
I run a laundromat to process my mountains of illicit cash
- myobie0
s corp was best for me...
get an amex for the corp (gold or platinum) and buy everything with that...
- jox0
Is this for a hash bar? If you're the proprietor, it's illegal for them to search you!
- lvl_130
i have an llc. The 1440 Project. i don't really do much* with it yet though.
*read as: nothing.
- mbr0
LLC
Taxation is transparent for a sole ownership, meaning you are taxed as an individual, not taxed twice.
S-Corps require more info to keep updated, which is part of the reason LLCs were created (less complicated, same benefits).Just don't tell anyone that you are an LLC. You DO NOT have to include the letters after the company name.