How many individual webmasters are incorporated?
 

For tax purposes, I hear an S-Corp is beneficial. I've also heard that an LLC is a great way to seperate personal from biz if you have people on the payroll. My question is whether or not it's beneficial to incorporate if you're an individual webmaster promoting other companies? I currently pay a self employment tax, but I'm sure there's an option out there that is a million times better than that. Also, how much money would you have to earn to make incorporating beneficial? I know there's no rule, but is it worth doing if I'm not quite at the 6 figure mark? I'll be close to it this year, but I don't want to do so if it won't be beneficial.

Also, I'll be purchasing a home and when applying for a loan I need to have 2 year job history. If I stay how I am now, I'm fine, but if I incorporate will I have to start the 2 year history all over again?

I'm sure others have these same questions. What would you guys suggest? What have you done to make your finances as tax friendly as possible? :helpme

aye yo im ghetto as fuck INC..nigga what?

llc outta delaware

llc here

Is there a benefit from having an LLC elsewhere? There is no state tax here in Vegas, so I'm pretty sure it'd be just as good to LLC here as it is anywhere else.

Do you have people on a payroll, or is this just for yourself? I won't be paying anybody until I get my program launched (in the semi-distant future).

It's a good idea to incorporate to shield yourself from liabilities.

Also, if you're incorporated you can claim more business deductions by putting purchases under your company's name.

LLC here.

That part is understood and it makes GREAT sense. I do however write off most everything business related with no problems. Again..Going back to the home loan question.. Would I have to start my 2 years employment all over again?

S Corp more beneficial tax wise than LLC. LLC is more flexible since there's no limit on the number and type of owners. Both share corp liability protection. Regarding home loan: Depends on your loan officer and who you're dealing with.

I personally have a S-Corp. When I work or do work for someone, the checks go to my corporation.

LLC's and S-Corp's. Got them both.

So it looks to me as if the S-Corp is more beneficial for an individual without partners working for other companies. Maybe I'll do an S-corp for my personal income and an LLC when I partner with a couple people on the programs. I planned on the LLC for the program already, but I was just wondering the best route to take for my personal work.

I assume this is sort of what you have setup, KRL?

Who said you can't have partners with S-Corp? It's almost exactly the same as an LLC. The differences are: the way you go about setting one up, S-Corp limit of 75 shareholders (partners) and other restrictions such as only a U.S. entity is able to create one. The tax benefit realized to the S-Corp is that if you retain most of the money in the corporation initially and distribute most of it in the form of dividend payments later, you're subject to less tax than a LLC.

How much does it cost to setup an LLC ? Whats the best way to go about it ? Ive seen places online but for some reason I think they are a rip off.

llc here and no it does not effect your ability to get a mortgage. Just explain it if they seem goofy but otherwise it is considered the same type of empleyment.

That's a good question. Perhaps someone knows of a one-stop company that does it all for you.

The only one I know of is NCHcorp. I forgot their website though. They advertise all over the radio.

They're based in Nevada. Lots of stuff to read though. Make sure you understand it all. There are major benefits to incorporating/LLC as that's what the wealthy do. No one buys their own shit. They let the company do it. Company buys the houses, cars etc. It's like optimizing investing in oneself and makes one more responsible for what one does in business but protects you from when you do dumb shit or disaster spreads.

Great info guys! 1 more question... Is it a must to have a business bank account before starting up an S-Corp, or can you do it after you are incorporated?

No, you are still self-employed.

Awesome.... Sounds like I'll be incorporating very soon. About fucking time, eh?

Bring it on. :eatmouse

Not much. A lawyer can set you up in a couple hours.

There's a bunch of info on this at www.incorporate.com. They also can setup your corp in your choice of state, and they do all the paper pushing for you. From what I've heard it's a good program, however I haven't incorporated yet so I can't speak from first hand experience.

I haven't gotten around to it...

used to be, then stopped using it due to the extra hassles. I am thinking about doing it again though for extra protection.

Extra hassles? Can you elaborate?

i had that same issue...it took some extra paperwork and explanations, and time going back and forth, but they finally understood that my business was the same before I incorporated under a different name. work with a mortgage broker who will fight for you and you'll be all set.

I am doin an LLC in a month or so.
Its lookin like June.

doing LLCs is great...

Private design has been nice to me but I do wanna go after bigger game and to do that one got's to set up right for them to even come to the table.

S-corp here.

Good to know. I'd better get a jump on incorporating pretty fast then. We're already in March... I'm slacking big time! :(

We're doing a S-corp for this next project, its going to cost us about $675 with the state and legal fees. Our accountant says we'll make that back within a year on taxes alone.

Turnaround time, less than a couple of days. As for the bank account, no worries if you don't have one beforehand, in fact its a little easier.

You have to do it after.

I used this company to incorporate out of nevada : http://www.nationalbusinessinc.com/
they made everything really easy and it took less then 2 weeks.

I have an llc also. It's a single-owner llc, so no tax advantages :(

Thinking about doing S-corp instead, but dont you get taxed twice? Corporate tax first plus income tax when you pay yourself?