S Corp or LLC
 

for all you guys with internet businesses, do you have an SCORP OR LLC

LLC is what I chose.

I chose LLC as well. Off the top of my head I can't remember why. I think it was just easier, or less expensive.

If you are forming an S-Corp, base it out of Nevada.

:2 cents:

im leaning towards LLC... easier to do paperwork and stuff.. do you guys pay quarterly tax to IRS?

i don't have either right now, but when i do finally decide to get one i think i will go with an LLC.

the LLC seems a bit more lax in regards to structure, etc...

for example, i was reading the other day that if you start an s-corp you need to have yearly meetings or the partners, and keep written records of these meetings.

i'll be honest. i'm too lazy to do something like that.

all in all from what i have been reading they don't seem THAT much different, except for little technicalities like that.

S-corp. Because that's what my accountant recommended. That's who you need to be asking because there are too many variables (not MY accountant, yours ;) )

well i read a lot.. seems LLC is good for me

Be smart about this decision..Write down the reasons you want to organize your business in a corporation, then go to your CPA and he will advise you which is best for your situation.
I am in california and have a california S corp, this has the best protection (corporate veil) and also has a good tax structure. Nevada corps are popular, but be aware of the local rules where you conduct business.

i did research.. i rather go with LLC

dont ask for legal advice on GFY.

go talk to an accountant.

I have a s-corp, that is why my lawyer and accountant agreed would be the best for what I was needing.

:1orglaugh :1orglaugh :thumbsup

My great aunt's nephew is an accountant and I think I heard him say an LLC was a good idea - also I like to read a lot and some website said they have cheap corps :pimp

Get a grip and professional advice on what is the more appropriate corp scenario - what is good for Donald Trump, does not mean it's good for you :-)

It's really a question for your accountant as he'll be able to give you a better understanding for the pros/cons of each.

An LLC gives you good flexibility, especially if you work with multiple partners and each take different shares of the company. Profits are passed through to you individually and it's very easy to setup and maintain. The biggest downfall of an LLC is having to pay self employment tax.

An S-Corp will help get rid of self employment tax which can save you thousands of dollars a year.

It really comes down to saving a few grand and whether the extra paperwork and lack of flexibility is worth it. I stuck with LLC because I'm a lazy fuck.

scorp here

ditto
 

ditto :rasta

S-Corp here

You need to be talking with an attorney and an accountant. Remember that you may save a few pennies now, but dealing with the law is a pain, and there is a nifty little thing called the corporate veil.

That self employment tax can be a fucking bitch if your making some nice money. I went through that my first year in the biz.

LLC is definitly the way to go!!!

My lawyers did a break down of both for me :thumbsup

If you are turning a profit, you are supposed to.

If you take a loss your first year, you do not have to. But as soon as you have a profitable year, then you have to from then on.

:disgust

Exactly.

:321GFY

I spoke to my accountant, he says the IRS is auditing the peeps with s corps because they are trying to circumvent the selfemployment tax (he said mainly the realtors in california has been doing s corps for this reason). One way to avoid the issue is to way yourself a nominal monthly wage for being an officer of the company (and pay selfemployment tax on that amount).

:thumbsup

From what I understood taxes are easier with an LLC. I believe he said if you do an s-corp although the money passes through to you you still have to file taxes for the S-corp whereas with an LLC you can report them on your own 1040. I went with LLCs for that reason.

How much do you have to make $$ in profit in order to even bother doing s-crop or llc??? Is over 100k in profits enough? Or do you have to make super major money to make it worthwhile?

Think both are more for protection of your personal assets more so than making a minimum amount of money.

depends on your needs, consult with a professional

I have Both S and LLC, but it depends what you wanna do with your company.

I would always consult a CPA first.