GFY corporate gurus LLC or S-Corp?
 

i'm finally about to file my paperwork and go corporate, my growth over the last year has prompted me to do this, eventhough i've been thinking about it for a while.

its going to be based out of NY, and will encompass all of my current online ventures.

my main goal with this corp will be to continue building freesites and eventually paysites along with some other projects. i have no plans on having any true fulltime employees at this moment. basically i will be outsourcing all work i wont have time for or cant do.

so what do you reccommend? and please explain why it would benefit me more.

what else should i know before incorporating?

thanks in advance :thumbsup

do I look like google? ;)

:( but you sure are sexy

lol, i actually find gfy to be much more faster in delivering info than google, plus i like seeing everyones different opinions

llc seems like a good choice..but i dont know about the different classes you guys have down there...talk to your cpa man

dont ask gfy

LLC all the way

if you get sued your stuff wont be taken from you.

Jizzzy I am under S Corp , but for your needs it might not be suitable.

i like LLCs. cheap easy and a good way to cover your ass

LLC all the way....

i know bro, thats why i wanted to see other peoples opinions on LLC's :thumbsup i'm actually swaying more towards LLCs

the irish agree LLC

LLC just doesn't have that cool gangster ring to it

:1orglaugh i'm actually going to post my tax info in another thread and let the gfy accountants file for me :thumbsup



lol, i am soooooooo joking on that

:1orglaugh :1orglaugh

my corp isnt going to be gangsta :( its gonna be wallstreet :)

LLC doesn't have as much paperwork, and can take on the form of other tax structures (I believe, including S-Corp)

Here's a good link to read up on some different structures: http://www.nolo.com
I've been reading it for days.

When I formed my company (NJ) I went with an S Corp the main reason being it was easier to get around self employment taxes. If you or any of the stockholders are foreign citizens you cannot be a stockholder in an S Corp, so an LLC may work better. A lot of it has to do with you and your partners' situations, if there's no partners involved S Corps and LLC's are quite similar. Also ask your lawyer and accountant as that's where your info and final decisions should come from :)

Professional Consultant will help you decide...
 

I'm a CPA and have several years auditing consulting experience on this. Shoot me an e-mail @ [email protected] and I'll help you out, free of charge. There are a couple things that will determine what is best. Very simple, and nothing personal.

If it is nothing personal, and very simple why not do it here so we can all enjoy it.

See if this link works... more info.
 

izz read up

http://www.nolo.com/article.cfm/obje...1/182/245/FAQ/

LLC :thumbsup

Because they are individualized answers; for example...
1. How many shareholders do you have?
2. Do you plan on selling shares/having investors?
3. Are any LLC's, Corporations, Sole Proprietorships, LLP's, etc. going to own any shares?
4. Do you own any other entities- personally or will the company?

etc., etc., etc.

sound like you are doing somethign simliar to what I did back in Oct. I ended up going with a s-corp. I'm the only person in the corp. Haven't had any problems at all.

LLC for sure

whats the difference from s-corp to llc? I've always had s-corps

I registered as an LLC last March and so far so good... the great thing is since I am the sole member I am considered a "disregarded entity" for tax purposes and file as a sole proprietor would.

and remember kids

S stands for Super Corp

An S-Corp is good when you only have individuals investing. If you have ANY OTHER TYPE OF ENTITY that owns shares, than you MUST have an LLC. There are some other differences as well, and obviously, the biggest difference is that an S-Corp limits the number (as well as the type as mentioned before) of investors/shareholders.

To ABDAFISH...
 

I hope you are filing a 1065 with that??? Unless your LLC has no income. But, you should still be filing financials.

My accountant says 's' corporation.....

Since she is built like a Viking Valkyrie, I figured it behooves me to pay attention and just do it.

How can you say that not knowing what the guy's situation is? Seriously, people, what is good for you may not be ideal for him.

LOL @ Jizzy

LLC to cover anything you will need with your companies, if you want more info icq me Izzz

Its really a complicated question that you should seek a real life accountant for, as the choice will have many subtle ramifications. The short answer is that a c-corp usually offers the maximum flexibility (99% of the fortune 500 are c-corp) but s-corp and llc might be easier of the pocketbook and require less forms to file. All my corporations are c-corp but I am an accountant so I don't mind doing a little extra work.

Just out of curiosity, why a c-corp? I'm a CPA as well, but see no advantage to a c-corp vs. an LLC or S-corp unless there are going to be mutiple investors/shareholders, etc. and a more complex structure. I'm just curious, not challenging you at all. Also, the C-Corp filing requirements are beastly, and even I'm not up for that.

Call a accountant if you dont have one, dont get corporate advice here lol

LLC and S-Corp are VERY similar. From my point of view i'd say to just go with the S-Corp because if you choose to grow it through investment downt he line it has a lot more avenues and the same tax benefits.

thanks so much for your replies :thumbsup sorry about the dealy i got caught up with something

basically i am going to be the major shareholder in this, its a small business and i dont have any investors and such so i wont be thinking about selling shares unless i really grew exponentially over the next year or so

no i dont own any other entities either

llc's are the best. they are inexpensive to start and you don't pay taxes on the llc income.

I'm a CPA, and always willing to help out friends in the industry.

These are the threads and questions that make gfy great :thumbsup this and the drama of course.

What is the average cost of forming an LLC?

Sounds actually like an LLP may be best. No complicated paperwork, funnels through to your personal tax return, no wages to be paid, and you have the same protection in terms of liability from other types of entities.

Get some FREE advice from my friends at www.sbsuite.com Contact them and tell them Gene sent you. Short answer: LLC is more flexible but it depends on your needs. Contact sbsuite.com and ask for free tax prep/strategy advice as well.

I got articles and submitted to the state (FL) for about $200. Any other costs are up to you. I used quickinc.com or something like that. Unless you are doing this full-time and have employees, or just feel like filling out a lot of paperwork, LLP may be the best route. It is really individualized, of course, but you don't always have to incorporate.

They asked me, "Who the fuck is Gene?"
:1orglaugh :1orglaugh :1orglaugh

I have been doing some research of my own and have a few points to throw in to the mix. I want to preface that this is not info I have recieved from a qaulified CPA or tax attorney so take it with a grain of salt.

I am leaning towards a main C-corp with the possability of having other s-corps or llcs's under it in umbrella form.

My main reason for wanting the main entity to be a C-corp is for credit purposes. I was advised that your corp will have the easiest time establishing credit with companies if you are a C-corp. This is credit with no persoanl guarantee by the way. I use my credit on my persoanl file for my personal cc's and home car etc. but want the business aspects to be seperate and with no PG.

I have a friend who recently set up a C-corp and has recently recieved:
$5,000 in credit with staples
$10,000 from Dell
$15,000 from Best Buy
10,000 from Comp Usa
$7,500 from Home depot
$5,000 from Expo
$5,000 from lowes and the list goes on.

Now don't get me wrong this is not the only reason why I would choose a C-corp and also you must understand that it doesn't give you cart blanche to just go out and spend blindly. You must be able to actually pay these bills back, but it is a lot easier to start up a biz with the help of these credit lines.

I myself am still confused with the structure and setup of a C-corp and the double taxation aspects, but like I said I am leaning towards this setup.

If any of the cpa's are available I would love to speak with you. Either leave your info in the thread or drop me a line. My contact info is in my sig.

TIA :thumbsup

Realistixxx or Thesaint are either of you available for a consultation?

Shoot me an e-mail @ [email protected]. There are a couple things- 1. An S-Corp cannot have a C-Corp as an owner, or another S-Corp, or an LLC, or an LLP, only individuals. 2. C-Corp has double taxation and will kill you unless you are very savvy. 3. The bank that gave your friend all his loans is definitely an exception, and quite frankly are idiots. I specialize in financial services audits and most C-Corp loans require personal guarantees unless the loan is a slam dunk, meaning, it's for land or building that has value in excess of the loan, about an 80% LTV is the max, and that is the rule with pretty much any asset that does not have accelerated depreciation. And, that is not a computer. 4. If you form an LLC or LLP you automatically have credit because it is your personal credit, so it is instantaneous. Now if you have bad credit, sorry. But, a bank does not appreciate not getting paid back, so if your friend that got all those loans happens to default, I guarantee they go after him, and there are ways to do that. I'm not going into details on that, but trust me, they can burn you. Shoot me an e-mail if there is anything else.

LOL, you joker you! :1orglaugh Tell them its Gene, Thomas' (one of SBSuite's owners) law school buddy.