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Discussion Starter · #1 ·
I am a firm believer that it is better to make a wrong decision rather than procrastinate on a decision. After all you are just deciding not to decide.

I must admit I have been doing that myself, in regards to starting a business of my own. So... I did just that. I dediced to decide and just completed the registration of my S corp and .com.

I will be taking the winter months to organize. Then I have to decide, quit my full time job and go full force or secretly pull side jobs and keep my full time job.

Decisions decisions.
 

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Congratulations!
I know your going to do well. I can tell you have the business skills to succeed.

Keep us up to date.

So, what made you decide on an S Corp vs. an LLC or C Corp?
 

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well Grumpy I'm probably not too far away from making the same decision. A friend of mine is getting his architectural license next year.. I've been waiting for him to get it so we can get back into building homes as a design/build firm. We've been talking quite a bit lately about organization of the company, safety manuals, quality control manuals, business plans, etc..etc. So hopefully mid-2004 I'll be back in control of my own destiny.. haha.
 

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Oops.. yeah that's about the same time we're thinking of doing it also. 2005 not 2004. I wanted to finish the house I am currently working on - it's so big that it'll be useful for future clients.
 

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Grumpy,

How much did it cost for you to form a S Corp?
Did you use someone or did you file the paperwork yourself?
I'm thinking of starting an S Corp in Jan or Feb.

-Nathan
 

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Discussion Starter · #8 ·
www.legalzoom.com $475. I did much research before I formed. With that 475 I get a bunch of corporate forms, a seal, and other misc goodies. They are also registering my federal tax number for me.

If you use legalzoom.com don't sign up right away. What I mean is, you setup an account and do all the necessary "paper work" until they ask for payment. At that point just stop and wait a few days. They will send you a coupon in your e-mail towards your payment :)

I am still awaiting the paper work to come to me via us postal. Supposedly all I will have to do is sign a few spots and mail the packet to the address they provide.
 

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Which package did you get, was it the Gold Incorporation Package?

Is there anything you recieved from legalzoom.com that you didn't think you could do yourself?

- Nathan
 

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Discussion Starter · #10 ·
They have 3 packages, I choose the middle. Every state will have different costs due to state specific fees.

There was nothing I couldn't do myself. It just saved me time to have them do it, and if I am correct in my math, their only fee was about $200, which is about the same an accountant or lawyer will charge but they tossed in a bunch fo goodies.

The "corporate seal" was the nail in the coffin because I don't know where to get one and could probably spend a good 30-45 mins finding a good deal.

You get my point. They made a few bucks and I saved a ton of time.
 

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hmmmm, a corporate seal. Yea, I'm probably going to have to cough up the money and have someone do it for me too. But I'm soooo cheap!
 

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Wow, your getting started quick!
No putting things off for you.

What name did you decide on?
Grumpy Roofers , right!
 

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I'm not an attorney, but I spoke to several before deciding to go with an LLC. After a lot of research and advice, an S Corp wasn't the best for what I'm doing. Make sure and ask questions about pass-through taxation, etc. Ironically, I was just reading in a book tonight called Multiple Streams of Income and the authors stressed the benefits and importance of an LLC, and stated that it is the fastest growing type of new businesses by far because of the many benefits. Just my 2 cents, good luck to you all!
 

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Discussion Starter · #15 ·
It's my understanding LLC is good if your a one man show but I don't plan on staying a one man show. I plan to have a thriving company with many employees. None of the companys that exist like the one I plan to grow into are LLC's. They are all S corps.
 

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That's not the information I've received for Tennessee, but different states have different rules governing LLC's and S Corps, etc. I know of many competitors who are very large that are LLC's, many have partners, investors, etc. My brother works for one of the top lawfirms in TN that is a Professional LLC, so you don't call their top lawyers partners, they are members. If I chose an S Corp, I would be taxed twice in TN, once as the Corp. and a second time as a partner.

Some states do recognize passthrough taxation for S Corps, TN however is one that does not - so your mileage may vary.

Grumpy said:
It's my understanding LLC is good if your a one man show but I don't plan on staying a one man show. I plan to have a thriving company with many employees. None of the companys that exist like the one I plan to grow into are LLC's. They are all S corps.
 

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Discussion Starter · #18 ·
Theres so many tax loopholes, you can avoid the double tax issue. I will be an employee of the inc, not just an owner so yes I will be taxed, but that's just a better reason for you to show no profit.
 

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That is one problem (nationwide) with legislation regarding LLCs and Corporations. Some states won't allow a single person to create an LLC. There is a little more annual paperwork with an S-Corp but it does afford other protections to the company.
tncontractor - your statement on double taxation is incorrect. If you went as a corporation you would have double taxation but if you get the s election you do not get double taxed - that's the reason for having the s-corp election.
Here are a couple pages to look at regarding what the Govt considers an S-Corp and what Tennessee (link not as reliable but I could find more) thinks.
http://www.allcorpfilings.com/incorporate-llc-tennessee/
http://www.mycorporation.com/s-corporation/What-Is-an-S-Corporation.htm
 
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