How Much Did You Pay To Get Incorporated? And Another QB Quest.

Mike Finley

You've got a ton of stuff jumbled up in that post - what double tax return filings are you referring to? Are you doing your own tax filings anyways? There is no canceling out of SS due to a deduction. SS taxes have nothing to do with double taxing issues that are spoken of in regard to corporations. The double taxing issue is in regard to a corporate tax, which as said about 100 times here can be avoided by electing your corporation as a sub-chapter S. LLC and corporation are almost identical when it comes to businesses we are in, there is no difference in the tax implications. If you can file an LLC for $125, you can file a corporation for the same amount. Only difference sounds like one you knew how to do yourself and the other you didn't so you were going to have to pay someone to do it.

Mike Finley

Keep in mind that in determining your business entity the accountant is only 1/2 the picture, you need an attorney for just as much initial advice.

The accountant can advise you on the taxing issues of which business entities you should consider but the accountant can't advise you on the legal aspects of the entities. The attorney can discuss the legal issues involved.

Once you have both sides of the issue discussed then you can make an informed decision as to which entity is best for you.

On the other hand you can just forget all the bullsh!t and just do what everybody before you who knows what they are doing does and just incorporate.

LOL, maybe that's to simplistic, I guess you really should be informed. An attorney can discuss with you the requirements needed for each of the entities as far as paperwork, meetings, record keeping and filings go.

One of the biggest determiners you will find between the top two choices LLC or Corp are going to be the maintenance required to maintain the entity. LLC has virtually none, Corp sounds like it has a lot, but in reality has about the same as the LLC.

TigerFan

Definately put yourself on the books and pay yourself a salary - even a mediocre one - it makes all the difference in the world to lenders.

I've owned a business since 1999 - and have been a salaried employee ever since - this business had a few years when it did nothing - and in those years, my salary was maybe $1500.00 for the whole year.

But come application time, I have a 7 year history of verifiable employment and on the applications I can supplement my salary with "other income" - ie business income, that get's me to the needed "capacity" for the loan.

tf
FWIW - we're not talking big money here - for example if I need to make $80k a year for a particular loan, I can show $40k for last years salary and other income of $40k to make up the difference - there are enough lenders that will take your business bank statements and "gross them out" for the additional income.

ApgarNJ

I know I described it wrong, about the SS thing, but my CPA just told me that in the end, i'm really not paying all 15% of my ss myself, that there is another item(not really sure what it is, because it was a while ago that he told me this) that has to do with self employment, which lowers the overall tax in the end. like I said, i'm not describing it right, but i understood him at the time.

I'm quite happy being an LLC and see no real reason to ever been INC.
I was told that even if I filed for INC myself, it was still going to be a lot more tahn 125 bucks. My accountant advised me that LLC was going to be a good choice, based on my business practices.

i_plant_art

i paid 350 to have me s-corp set up... my attourney did it all for me he normally charges 500 but i keep him busy so he cuts me a break on some things.......

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