LLC or Sole Proprietership?

[BusterStacks]

I need to form a small company. Any advice is appreciated. From the 2 minutes I spent looking into it, it looks like I can form an LLC for < $100. Is this the way to go? What about my being the sole owner? Let's hear it.

[MrTrik]

A Corporation sub S won't cost you much more and might give you what you want. Would need much more info to answer that though.

[Ulysses]

Cruise around this website, buy book or e-guide if you need more detail (http://www.nolo.com/article.cfm/ObjectID/2C1A52D5-9364-4F92-AD191B56DF9D4CE6/catID/5DE04E60-45BB-4108-8D757E247F35B8AB/111/182/ART/)

[judgesmails]

LLC.

Better liability protection than sole prop and can be taxed similar to S corp (pass through).

[BusterStacks]

I would have no liability, but I do require pass-through taxation. Which is less of a hassle in terms of paperwork, Corporation Sub S or LLC?

[judgesmails]

I have had an LLC in WI and an "S" corp in NV and the paperwork required for taxes and the Secretary of State for the "S" corp in NV were much more extensive and time consuming than for the LLC in WI.

[MrTrik]

I have 3 S-Corps in MN. Very little paperwork. Taxes all handled through personal filings. Secretary of state is a simple web thing once a year with a small fee. Oh, and there is a simple worker's comp web filing, but you can close that out if you have no other employees and in some other circumstances.

Sub "S" is the way to go to avoid double taxation.

[ddollevoet]

What type of biz? It matters sometimes.

[GuyOnTilt]

Dude. Go have lunch with an attorney who knows about such things. Hire one.

GoT

[BusterStacks]

[ QUOTE ]
Dude. Go have lunch with an attorney who knows about such things. Hire one.

GoT

[/ QUOTE ]

Thanks for your insight, GoT. You have really helped this thread.

[GuyOnTilt]

[ QUOTE ]
[ QUOTE ]
Dude. Go have lunch with an attorney who knows about such things. Hire one.

GoT

[/ QUOTE ]

Thanks for your insight, GoT. You have really helped this thread.

[/ QUOTE ]

Dude. Nobody here is going to be able to give you good advice based on your OP. Like, not in the slightest. Meeting with someone who deals with these things and can give you solid advice based on the exact details of what you want, spell out the pros and cons based on your situation, etc is definitely what you should be doing. If you were planning on jumping into something like this based on a few hours of reading and some responses in this thread and not meeting with an attorney, you should reconsider. I can give you a number if you live in Southern California.

GoT

[PITTM]

[ QUOTE ]
[ QUOTE ]
Dude. Go have lunch with an attorney who knows about such things. Hire one.

GoT

[/ QUOTE ]

Thanks for your insight, GoT. You have really helped this thread.

[/ QUOTE ]

when you ask advice on something and someone who has already gone through that process successfully responds and tells you how they did it, a sarcastic response is generally not appropriate.

rj

[ThaSaltCracka]

my advice, go take a small business class or seminar. Most local colleges have them pretty frequently.

[kenberman]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Dude. Go have lunch with an attorney who knows about such things. Hire one.

GoT

[/ QUOTE ]

Thanks for your insight, GoT. You have really helped this thread.

[/ QUOTE ]

Dude. Nobody here is going to be able to give you good advice based on your OP. Like, not in the slightest. Meeting with someone who deals with these things and can give you solid advice based on the exact details of what you want, spell out the pros and cons based on your situation, etc is definitely what you should be doing. If you were planning on jumping into something like this based on a few hours of reading and some responses in this thread and not meeting with an attorney, you should reconsider. I can give you a number if you live in Southern California.

GoT

[/ QUOTE ]

this is the only correct answer to the OP's question

If your state allows single member LLCs, this is the easy choice. No separate tax filing required, you just file a Schedule C with your 1040. You also don't, in most cases, have to get a separate tax ID number.

S Corps aren't that much more complicated, but doing (or paying someone to do) an 1120S is an unnecessary expense.

[Felix_Nietsche]

When you incoporate you can give yourself medical benefits therefore all doctor visits are expensed rather than coming from personal expenses. Also you can play games where you pay yourself dividends like John Edwards did to avoid taxes (John Kerry's VP). But if your asking for free advice from dopes like me....you get what you pay for. Pay the $100 for a 1/2 hour to get your questions answered by someonw who REALLY knows.

[Ulysses]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Dude. Go have lunch with an attorney who knows about such things. Hire one.

GoT

[/ QUOTE ]

Thanks for your insight, GoT. You have really helped this thread.

[/ QUOTE ]

Dude. Nobody here is going to be able to give you good advice based on your OP. Like, not in the slightest. Meeting with someone who deals with these things and can give you solid advice based on the exact details of what you want, spell out the pros and cons based on your situation, etc is definitely what you should be doing. If you were planning on jumping into something like this based on a few hours of reading and some responses in this thread and not meeting with an attorney, you should reconsider. I can give you a number if you live in Southern California.

GoT

[/ QUOTE ]

this is the only correct answer to the OP's question

[/ QUOTE ]

No it's not. Nolo.com can absolutely provide him with the info he needs to make a good decision.

[BusterStacks]

I have heard that Schedule C filings on a 1040 are a prime target for IRS audits. Any truth to this?

[ QUOTE ]
I have heard that Schedule C filings on a 1040 are a prime target for IRS audits. Any truth to this?

[/ QUOTE ]

Some, but not much. People who file Schedule C do get audited more than average, but a lot of that is because they insist on doing their own return and royally [censored] it up. Deducting stuff that clearly isn't deductible. Claiming expenses that are way out of line compared to income, that sort of thing. Easy pickings for the IRS.

[codewarrior]

Ask a lawyer, not an Ootiot. Even an Ootiot lawyer. /images/graemlins/tongue.gif

[jakethebake]

Try the SBA website. Lots of info there.