S Corporation - GoFuckYourself.com

Juicy D. Links · 08-31-2003, 07:03 PM

Yo anybody know if for a S Corp in the election of officers if you can have one officer with 100 percent of the shares?

lEricPl · 08-31-2003, 07:04 PM

Yes

I am 100% shareholder of my corp.

We are setup as an SCorp.

GrimShawn · 08-31-2003, 07:04 PM

S Corp is blah

KRL · 08-31-2003, 07:05 PM

Look into an LLC. A few more advantages.

lEricPl · 08-31-2003, 07:05 PM

Quote:

Originally posted by KRL
Look into an LLC. A few more advantages.

How so?

As far as taxes my accountant recommended an SCorp.

SpeakEasy · 08-31-2003, 07:09 PM

Quote:

Originally posted by KRL
Look into an LLC. A few more advantages.

Actually a sub chapter s corp has many better advantages...

If you talk to a good Tax accountant one who is also a goot Tax attorney he will fill you in on all the advantages of both and you will see the sub s corp is much better for some people.

stocktrader23 · 08-31-2003, 07:09 PM

Quote:

Originally posted by lEricPl

How so?

As far as taxes my accountant recommended an SCorp.

Mine too.

OneHungLo · 08-31-2003, 07:47 PM

Quote:

Originally posted by SpeakEasy

Actually a sub chapter s corp has many better advantages...
If you talk to a good Tax accountant one who is also a goot Tax attorney he will fill you in on all the advantages of both and you will see the sub s corp is much better for some people.

Yup

slapass · 08-31-2003, 07:50 PM

I just did an LLC and I am pretty happy with the outcome.

Juicy D. Links · 08-31-2003, 07:52 PM

One is not better than the other. They both are good but depedns on your business and strategy. One might be better for one business but the other for the other business

lexr · 08-31-2003, 08:00 PM

Quote:

Originally posted by juicylinks
Yo anybody know if for a S Corp in the election of officers if you can have one officer with 100 percent of the shares?

Yup, you sure can.

Any Corporation can be set up with just 1 share with you holding that only share and thus having 100% ownership. Obviously if it's an S or a C Corp you'll be taxed accordingly.

And yeah, it definitely depends on what your business type is and what your plan/strategy is. It's easier to let in more partners, for example, with a Corp than with an LLC (which is usually established as a Sole Proprietorship or a Partnership, but can actually be a Corp too).

Snake Doctor · 08-31-2003, 08:21 PM

My biz is an LLC and taxed as an S corporation.

My accountant said that would be the best way to go.

robfantasy · 08-31-2003, 08:41 PM

i need to file my 2553 now, just incorporated.

http://www.irs.gov/pub/irs-fill/f2553.pdf

any advice on how i should fill it out?

ytcracker · 08-31-2003, 08:43 PM

i have an llc its pimp

Gman.357 · 08-31-2003, 08:44 PM

Quote:

Originally posted by stocktrader23

Mine too.

Me 3.

S Corp over LLC.

Why · 08-31-2003, 08:46 PM

LLC;s and S-Corps are both pass throughs, so for most part they are taxed the same. but with a corp you can give bonuses and shit.

its wise to give at least 1 share to someone else for various reasons. if your worried about liability.

triumph · 08-31-2003, 08:47 PM

yes you can, and an s corp is the best way to go, and you avoid double taxation.

Probono · 08-31-2003, 09:27 PM

For tax purposes both and S corp and and LLC are basically the same. There are some subtile differences in the way the Manager of an LLC can be paid.

As far as liability each State may be a little different so talk with an attorney in the State you plan to establish either.

lexr · 08-31-2003, 10:23 PM

Quote:

Originally posted by robfantasy
i need to file my 2553 now, just incorporated.

http://www.irs.gov/pub/irs-fill/f2553.pdf

any advice on how i should fill it out?

Very clearly and carefully.

It's actually fairly self-explanatory and the instructions are pretty thorough. Though, if you're in doubt, it never hurts to see a tax attorney, CPA or financial advisor for some assistance.

lexr · 08-31-2003, 10:25 PM

Quote:

Originally posted by triumph
yes you can, and an s corp is the best way to go, and you avoid double taxation.

You do know that the only time there'd be double taxation is if you have Corporate cash that you want to distribute to yourself, right? Compensation of offices (you) is taken as a business deduction on form 1120 (Corp. Tax Return) and thus is not taxed when computing your taxable income (Line 30).

That's pretty much why if it's just a one member Corporation and you want all the money for yourself without the hassle of distrubiting extra cash to each shareholder (well, in your case, just you - holding the one share) and paying an additional tax on that, then it's usually best to elect to be recognized as an S Corporation.

LLC is less hassle to setup. S Corp is easier to change the status of ownership (ie: introduce new partners or whatever you want).

PersianKitty · 08-31-2003, 11:08 PM

They aren't both the same when it comes to payroll taxes.

---cut and paste from a previous post I made---

Social security tax is broken into to parts... FICA (6.2%) of the first $87,000 you made in 2002 and Medicare (1.45%) of your total wages. For those who are self-employed and not incorporated you end you paying both the 'employee' and the 'employer' portion of the taxes which doubles it.

Where being an LLC or Incorporated helps is that you can pay yourself a specific wage so it caps the limit on your medicare taxes and also the employer portion of the taxes becomes an expense of the company.

For example... if you netted $250,000 self-employed. You'd pay $10,778 in FICA ($87K X 6.2% X 2) and $7,250 in Medicare($250,000 X 1.45% x 2).

Now if you're incorporated as an S-Corp where all the income passes to you anyway, you could set your 'salary' as $100,000. You'd seill pay FICA but half of it would be a direct expense of the company. The Medicare would be a total of $2,900, but half of that is an expense of the company (as are your wages).

So in that example alone without taking into account any other benefits, you'd save yourself $4,350. It works out to more across the board, but I'm using an easy example.

You can also set yourself up a 'pension' plan and put up to $40K a year of untaxed money away. It reduces the bottom line of your company and you pay less taxes that way.

lexr · 09-01-2003, 11:10 AM

Yup yup.

Nasty D · 09-01-2003, 11:13 AM

Quote:

Originally posted by Lenny2
My biz is an LLC and taxed as an S corporation.

My accountant said that would be the best way to go.

same here -- Is LLC available in all states now?

lexr · 09-02-2003, 09:44 PM

Quote:

Originally posted by Nasty D

same here -- Is LLC available in all states now?

Not sure about all states, honestly. But most of the states that count have it available.

goBigtime · 09-02-2003, 09:50 PM

Quote:

Originally posted by robfantasy
i need to file my 2553 now, just incorporated.

http://www.irs.gov/pub/irs-fill/f2553.pdf

any advice on how i should fill it out?

While you neglect the things you do trying to figure it out, call an accountant & ask them how much it would cost for them to conduct a photoshoot for you

I learned the hard way early on about trying to wear too many hats in business. The "accountant hat" is not one worth bothering with when good accountants are relatively cheap and know leaps and bounds more than you or I about these things.

My accountant has saved me many many times over what he has cost me.

Stick to what you know & do well... let accountants handle your accounting & official paperwork stuff.

08-31-2003, 07:03 PM	#1
Juicy D. Links So Fucking Banned Industry Role: Join Date: Apr 2001 Location: N.Y. -Long Island -- Posts: 122,992	S Corporation Yo anybody know if for a S Corp in the election of officers if you can have one officer with 100 percent of the shares?

08-31-2003, 07:05 PM	#4
KRL Entrepreneur Join Date: Oct 2002 Location: USA Posts: 31,429	Look into an LLC. A few more advantages. __________________ If you would like to develop your domains, you can lease inexpensive foreign labor from the leaders in the field at iWebmasters.com TO LOWER YOUR COSTS AND INCREASE YOUR PRODUCTION! * * * * * * * * * * * * Domains Adult News KRL's Newsletter Biz Tips Just Listed Domains

08-31-2003, 08:21 PM	#12
Snake Doctor I'm Lenny2 Bitch Join Date: Mar 2001 Location: On top of my soapbox Posts: 13,449	My biz is an LLC and taxed as an S corporation. My accountant said that would be the best way to go. __________________ sig too big

08-31-2003, 08:41 PM	#13
robfantasy Confirmed User Industry Role: Join Date: Jun 2002 Location: Medellin, Colombia Posts: 6,445	i need to file my 2553 now, just incorporated. http://www.irs.gov/pub/irs-fill/f2553.pdf any advice on how i should fill it out? __________________ Looking to speak w/ high volume nutra CPA affiliates or networks... msg me

08-31-2003, 08:43 PM	#14
ytcracker stc is the greatest Join Date: Dec 2002 Location: rip sean murray Posts: 12,403	i have an llc its pimp __________________ www.ytcracker.com \| www.digitalgangster.com i love you

08-31-2003, 07:04 PM	#2
lEricPl Confirmed User Join Date: Dec 2002 Location: FL Posts: 1,062	Yes I am 100% shareholder of my corp. We are setup as an SCorp.

08-31-2003, 07:04 PM	#3
GrimShawn Confirmed User Join Date: Oct 2002 Location: BONEPRONE MANSION serving drinks! Posts: 8,120	S Corp is blah

08-31-2003, 07:50 PM	#9
slapass Too lazy to set a custom title Join Date: Nov 2002 Location: Earth Posts: 14,622	I just did an LLC and I am pretty happy with the outcome.

08-31-2003, 07:52 PM	#10
Juicy D. Links So Fucking Banned Industry Role: Join Date: Apr 2001 Location: N.Y. -Long Island -- Posts: 122,992	One is not better than the other. They both are good but depedns on your business and strategy. One might be better for one business but the other for the other business

08-31-2003, 08:46 PM	#16
Why MFBA Industry Role: Join Date: Mar 2003 Location: PNW Posts: 7,230	LLC;s and S-Corps are both pass throughs, so for most part they are taxed the same. but with a corp you can give bonuses and shit. its wise to give at least 1 share to someone else for various reasons. if your worried about liability.

08-31-2003, 08:47 PM	#17
triumph Confirmed User Industry Role: Join Date: Dec 2002 Location: Los Angeles Posts: 3,433	yes you can, and an s corp is the best way to go, and you avoid double taxation.

08-31-2003, 09:27 PM	#18
Probono Confirmed User Join Date: Oct 2002 Location: Under the Rainbow Posts: 2,731	For tax purposes both and S corp and and LLC are basically the same. There are some subtile differences in the way the Manager of an LLC can be paid. As far as liability each State may be a little different so talk with an attorney in the State you plan to establish either.

08-31-2003, 11:08 PM	#21
PersianKitty Meow Media Inc. Industry Role: Join Date: Jul 2001 Location: In the valley of the sun, cactus, tacos, tequila, and nod Posts: 7,785	They aren't both the same when it comes to payroll taxes. ---cut and paste from a previous post I made--- Social security tax is broken into to parts... FICA (6.2%) of the first $87,000 you made in 2002 and Medicare (1.45%) of your total wages. For those who are self-employed and not incorporated you end you paying both the 'employee' and the 'employer' portion of the taxes which doubles it. Where being an LLC or Incorporated helps is that you can pay yourself a specific wage so it caps the limit on your medicare taxes and also the employer portion of the taxes becomes an expense of the company. For example... if you netted $250,000 self-employed. You'd pay $10,778 in FICA ($87K X 6.2% X 2) and $7,250 in Medicare($250,000 X 1.45% x 2). Now if you're incorporated as an S-Corp where all the income passes to you anyway, you could set your 'salary' as $100,000. You'd seill pay FICA but half of it would be a direct expense of the company. The Medicare would be a total of $2,900, but half of that is an expense of the company (as are your wages). So in that example alone without taking into account any other benefits, you'd save yourself $4,350. It works out to more across the board, but I'm using an easy example. You can also set yourself up a 'pension' plan and put up to $40K a year of untaxed money away. It reduces the bottom line of your company and you pay less taxes that way. __________________ Wondering what webmaster programs PK uses? Check them out here!

09-01-2003, 11:10 AM	#22
lexr Confirmed User Join Date: Jul 2003 Location: Tempe, AZ Posts: 428	Yup yup.