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?

Yes

I am 100% shareholder of my corp.

We are setup as an SCorp.

S Corp is blah

Look into an LLC. A few more advantages.

How so?

As far as taxes my accountant recommended an SCorp.

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.

Mine too.

Yup

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

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

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).

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

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

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?

i have an llc its pimp

Me 3.

S Corp over LLC.

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.

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

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.

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.

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).

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.

Yup yup.

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. :)

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 :winkwink:


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. :2 cents: