People who have LLC...Do you file your federal income tax for the company as: - GoFuckYourself.com

BlueWire · 07-24-2005, 11:22 PM

Sole Proprietor?
C-Corp?
S-Corp?

Just interested about what you guys all do to avoid paying the big bucks to uncle sam

V_RocKs · 07-24-2005, 11:51 PM

LLC pays income tax as a sole proprietor. An LLC isn't good for taxes, it is only good as a vehicle for keeping you and your business seperated.

I was once a van shuttle driver. I got sued because my partner got into an accident. Had we setup the business as an LLC I wouldn't have been sued by the customers. Just the business would have. By the grace of God, the judge decided to remove me from the list of defendants. My partner had to take out a second mortgage to pay off the damages from the suit.

As for taxes, if you are alone, taxes are filed on your 1040, if a partner or several, file a Schedule K to break up the income of the business, then each of you files your own 1040 based on what the Schedule K left you.

wdsguy · 07-25-2005, 12:04 AM

consult a lawyer

WarChild · 07-25-2005, 12:08 AM

Wow that all sounds complicated.

I prefer to just not pay any tax, it's really a lot better.

V_RocKs · 07-25-2005, 12:41 AM

Quote:

Originally Posted by WarChild

Wow that all sounds complicated.

I prefer to just not pay any tax, it's really a lot better.

Exactly!

KRL · 07-25-2005, 12:50 AM

Goes on your 1040

jonesy · 07-25-2005, 01:28 AM

Quote:

Originally Posted by BlueWire

Sole Proprietor?
C-Corp?
S-Corp?

Just interested about what you guys all do to avoid paying the big bucks to uncle sam

brother with a question like that you need to hire an CPA. and get references too.

find out who does taxes for companies/people in your town that make alot of money - those CPA's arent cheap but in the longrun it will save you $$$

ProjectNaked · 07-25-2005, 02:01 AM

Quote:

Originally Posted by V_RocKs

As for taxes, if you are alone, taxes are filed on your 1040, if a partner or several, file a Schedule K to break up the income of the business, then each of you files your own 1040 based on what the Schedule K left you.

What he said

(and consult with accountant/lawyer

)

bigdog · 07-25-2005, 05:50 AM

would talk to a cpa, but i think filing as a s-corp saves you in taxes

Sosa · 07-25-2005, 07:10 AM

def go talk to a good accountant.

V_RocKs · 07-26-2005, 12:16 AM

The only corp that is going to save you money is a C Corp.

Sole proprietors, File Shedule C (profit and loss) (the business side of your taxes) then take the income and add it to your 1040 gross income.

Partnership, 1065 and Schedule K for the business, then all profits are split among partners to go on their 1040's as gross income.

S Corp, 1120S Similar to 1065/S-K deal, then give profits to shareholders (partners) to add to their 1040 gross income.

LLC, If 1 member, treated as sole proprietor, 2 or more, treat as a partnership. Same forms.

C Corp, The only non-passthru entity. It will pay its own taxes. Form 1120 or 1120-A.
A C-Corp is going to get taxed less than you would have. So you can deduct all the crap, pay yourself, and then it gets taxed on what is left. Most people leave money in the C Corp that they aren't going to use, this means it gets taxed at the C-Corp rate at not at the personal rate. C-Corp's can also pay their employees with tax-free fringe benefits. Like health insurance, 401K, movie tickets.. etc...

But if you are the only one in the corp (except for the 'friend' who is the other shareholder), and you give yourself benefits, prepare for the IRS to fuck you dry and call you an S-Corp because you are acting like one.

Dravyk · 07-26-2005, 01:08 AM

An LLC is best used as an umbrella partnership between two or more companies.

venus · 07-26-2005, 02:09 AM

incorporate in nevada and you wont have to pay federal taxes on what the s-corp makes.

V_RocKs · 07-26-2005, 03:49 AM

You will need to pay Federal taxes no matter what state you incorporate in. But in Neveda you won't have to pay State taxes.

slapass · 07-26-2005, 04:49 AM

LLC with partners has some cool shit.

Linkster · 07-26-2005, 06:20 AM

LLC and S-Corp are two different things - you definitely need to talk to a CPA - you also have to file with the IRS to get your corporation treated as either a LLC or a S-Corp depending on what you choose when you file the SS-4 - you can also go back and change it if needed. How you get taxed also depends a heck of a lot dependant on how you take money out, or if you do at all, whether you pay salaries, whether you take personal money out etc. One year (one of my companies was a LLC Partnership classification) I had things set up wrong and ended up owing $30k extra just because I had the corp paying out incorrectly.

Sosa · 07-26-2005, 07:13 AM

Quote:

Originally Posted by Linkster

LLC and S-Corp are two different things - you definitely need to talk to a CPA - you also have to file with the IRS to get your corporation treated as either a LLC or a S-Corp depending on what you choose when you file the SS-4 - you can also go back and change it if needed. How you get taxed also depends a heck of a lot dependant on how you take money out, or if you do at all, whether you pay salaries, whether you take personal money out etc. One year (one of my companies was a LLC Partnership classification) I had things set up wrong and ended up owing $30k extra just because I had the corp paying out incorrectly.

care to explain this more? As to what you were doing wrong when paying out of your corp. can I hit up up on icq or email?

Linkster · 07-26-2005, 07:19 AM

Sosa - I was taking draws on the company but as an LLC (my accountant tried to explain this to me LOL) you are taxed as if it were personal income.
As a S-corp you can evidently do some swapping of the money without considering it personal income and still use your normal biz expenses to offset the income. Where I messed up is that since it was being considered personal income I should have done quarterly estimated taxes - since I didnt have enough personal exemptions and deductions to offset it. If I had been paying myself as an employee of a S-Corp then I could have kept it as biz expenses and written against it

Peaches · 07-26-2005, 07:21 AM

Quote:

Originally Posted by venus

incorporate in nevada and you wont have to pay federal taxes on what the s-corp makes.

Not true. You don't save money incorporating in NV if you're an S corp unless you personally live in NV. A C corp will save money though.

Every situation is different. Find a good CPA/Tax attorney before making decisions that affect your bottom line. My CPA saved me about $20K in taxes the first year I hired him. They are worth it

tony286 · 07-26-2005, 07:27 AM

Quote:

Originally Posted by Peaches

Not true. You don't save money incorporating in NV if you're an S corp unless you personally live in NV. A C corp will save money though.

Every situation is different. Find a good CPA/Tax attorney before making decisions that affect your bottom line. My CPA saved me about $20K in taxes the first year I hired him. They are worth it

Amen I wouldnt be getting tax advice on GFY lol

Sosa · 07-26-2005, 07:39 AM

Quote:

Originally Posted by Linkster

Sosa - I was taking draws on the company but as an LLC (my accountant tried to explain this to me LOL) you are taxed as if it were personal income.
As a S-corp you can evidently do some swapping of the money without considering it personal income and still use your normal biz expenses to offset the income. Where I messed up is that since it was being considered personal income I should have done quarterly estimated taxes - since I didnt have enough personal exemptions and deductions to offset it. If I had been paying myself as an employee of a S-Corp then I could have kept it as biz expenses and written against it

Ahh ok sounds good then. I have a S-corp and just pay myself a monthly salary. I then have to pay taxes on that salary just like income from a normal job. Then the corp pays taxes for like unemployment and shit. Just 1 person s-corp for me. I'm gonna talk to a few different CPA's and get their input on a few other ways I can cut my tax paying down.

GonZo · 07-26-2005, 07:56 AM

S-Corp for me. BTW thanks for fixing up that flash header for us. Newton said you were a life saver. Ill have more work for you shortly.

seven · 07-26-2005, 08:12 AM

Quote:

Originally Posted by V_RocKs

C Corp, The only non-passthru entity. It will pay its own taxes. Form 1120 or 1120-A. A C-Corp is going to get taxed less than you would have. So you can deduct all the crap, pay yourself, and then it gets taxed on what is left. Most people leave money in the C Corp that they aren't going to use, this means it gets taxed at the C-Corp rate at not at the personal rate. C-Corp's can also pay their employees with tax-free fringe benefits. Like health insurance, 401K, movie tickets.. etc...

But if you are the only one in the corp (except for the 'friend' who is the other shareholder), and you give yourself benefits, prepare for the IRS to fuck you dry and call you an S-Corp because you are acting like one.

C-corp is what I got & like

FreeHugeMovies · 07-26-2005, 08:38 AM

Sub chapter S here

tristan_D · 07-27-2005, 01:36 AM

paying taxes: damn if you do, damn if you don't

07-24-2005, 11:22 PM	#1
BlueWire Confirmed User Join Date: Nov 2004 Posts: 4,628	People who have LLC...Do you file your federal income tax for the company as: Sole Proprietor? C-Corp? S-Corp? Just interested about what you guys all do to avoid paying the big bucks to uncle sam

07-25-2005, 12:08 AM	#4
WarChild Let slip the dogs of war. Industry Role: Join Date: Jan 2003 Location: Bermuda Posts: 17,263	Wow that all sounds complicated. I prefer to just not pay any tax, it's really a lot better. __________________ .

07-25-2005, 12:50 AM	#6
KRL Entrepreneur Join Date: Oct 2002 Location: USA Posts: 31,429	Goes on your 1040 __________________ 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

07-26-2005, 01:08 AM	#12
Dravyk Confirmed User Join Date: Jan 2001 Location: Yo, Philly! Posts: 1,202	An LLC is best used as an umbrella partnership between two or more companies. __________________ All Of 'Em

07-26-2005, 02:09 AM	#13
venus Confirmed User Industry Role: Join Date: Jan 2003 Location: Phoenix, Az Posts: 3,112	incorporate in nevada and you wont have to pay federal taxes on what the s-corp makes. __________________ Muscle/Fitness Adult Affiliate Program Since 1997 www.venuscash.com

07-24-2005, 11:51 PM	#2
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,422	LLC pays income tax as a sole proprietor. An LLC isn't good for taxes, it is only good as a vehicle for keeping you and your business seperated. I was once a van shuttle driver. I got sued because my partner got into an accident. Had we setup the business as an LLC I wouldn't have been sued by the customers. Just the business would have. By the grace of God, the judge decided to remove me from the list of defendants. My partner had to take out a second mortgage to pay off the damages from the suit. As for taxes, if you are alone, taxes are filed on your 1040, if a partner or several, file a Schedule K to break up the income of the business, then each of you files your own 1040 based on what the Schedule K left you.

07-25-2005, 12:04 AM	#3
wdsguy Ryde or Die Industry Role: Join Date: Dec 2002 Location: California-Shanghai Posts: 19,568	consult a lawyer

07-25-2005, 05:50 AM	#9
bigdog Confirmed User Join Date: Jul 2001 Posts: 6,964	would talk to a cpa, but i think filing as a s-corp saves you in taxes

07-25-2005, 07:10 AM	#10
Sosa In Tushy Land Join Date: Oct 2002 Location: Nebraska Posts: 40,149	def go talk to a good accountant.

07-26-2005, 12:16 AM	#11
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,422	The only corp that is going to save you money is a C Corp. Sole proprietors, File Shedule C (profit and loss) (the business side of your taxes) then take the income and add it to your 1040 gross income. Partnership, 1065 and Schedule K for the business, then all profits are split among partners to go on their 1040's as gross income. S Corp, 1120S Similar to 1065/S-K deal, then give profits to shareholders (partners) to add to their 1040 gross income. LLC, If 1 member, treated as sole proprietor, 2 or more, treat as a partnership. Same forms. C Corp, The only non-passthru entity. It will pay its own taxes. Form 1120 or 1120-A. A C-Corp is going to get taxed less than you would have. So you can deduct all the crap, pay yourself, and then it gets taxed on what is left. Most people leave money in the C Corp that they aren't going to use, this means it gets taxed at the C-Corp rate at not at the personal rate. C-Corp's can also pay their employees with tax-free fringe benefits. Like health insurance, 401K, movie tickets.. etc... But if you are the only one in the corp (except for the 'friend' who is the other shareholder), and you give yourself benefits, prepare for the IRS to fuck you dry and call you an S-Corp because you are acting like one.

07-26-2005, 03:49 AM	#14
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,422	You will need to pay Federal taxes no matter what state you incorporate in. But in Neveda you won't have to pay State taxes.

07-26-2005, 04:49 AM	#15
slapass Too lazy to set a custom title Join Date: Nov 2002 Location: Earth Posts: 14,625	LLC with partners has some cool shit.

07-26-2005, 06:20 AM	#16
Linkster Confirmed User Join Date: Feb 2003 Location: DeltaHell Posts: 3,216	LLC and S-Corp are two different things - you definitely need to talk to a CPA - you also have to file with the IRS to get your corporation treated as either a LLC or a S-Corp depending on what you choose when you file the SS-4 - you can also go back and change it if needed. How you get taxed also depends a heck of a lot dependant on how you take money out, or if you do at all, whether you pay salaries, whether you take personal money out etc. One year (one of my companies was a LLC Partnership classification) I had things set up wrong and ended up owing $30k extra just because I had the corp paying out incorrectly. __________________ Porn Links Crak for your bank account - Get Addicted FREE LIVE CAM SHOWS

07-26-2005, 07:19 AM	#18
Linkster Confirmed User Join Date: Feb 2003 Location: DeltaHell Posts: 3,216	Sosa - I was taking draws on the company but as an LLC (my accountant tried to explain this to me LOL) you are taxed as if it were personal income. As a S-corp you can evidently do some swapping of the money without considering it personal income and still use your normal biz expenses to offset the income. Where I messed up is that since it was being considered personal income I should have done quarterly estimated taxes - since I didnt have enough personal exemptions and deductions to offset it. If I had been paying myself as an employee of a S-Corp then I could have kept it as biz expenses and written against it __________________ Porn Links Crak for your bank account - Get Addicted FREE LIVE CAM SHOWS Last edited by Linkster; 07-26-2005 at 07:20 AM..

07-26-2005, 07:56 AM	#22
GonZo Confirmed User Industry Role: Join Date: Jul 2002 Location: Atlanta,Ga. Posts: 3,180	S-Corp for me. BTW thanks for fixing up that flash header for us. Newton said you were a life saver. Ill have more work for you shortly. __________________ Assclown Bob Rice wants to BANG your credit card! "I am putting the bastards of this world on notice; greed and corruption will always be met with "a voice made of ink and rage." All the information above is my personal opinion.

07-26-2005, 08:38 AM	#24
FreeHugeMovies Too lazy to set a custom title Join Date: Dec 2001 Location: Charlotte, NC Posts: 14,137	Sub chapter S here

07-27-2005, 01:36 AM	#25
tristan_D Confirmed User Join Date: Jul 2005 Posts: 7,865	paying taxes: damn if you do, damn if you don't __________________ Increase your sales. Up to $4 per click.