In Forming A Corporation You Better Not Listen To Me
but the LLC is a good choice, the full corporation is a red tape nightmare I know I used to have one. Big pain in the ass. the LLC you pass through the profits and is insiders you can draw on it as you agree (percentage wise) the biggest red tape and nightmare in the corp is payroll and all the red tape. LLC will avoid it.
Ask a lawyer or someone who knows as I am just a businessman
Payroll is identical in an s-corp or an LLC.
nor exactly ....
as INSIDER you do not need payroll to pull money out of the LLC
where with the corp you do (there are some ways around that too but I will not go there here)
andrasm is right. As an accountant, an LLC is the best structure to operate from. You get the limited liability protection of a corporation without the double-taxation penalty. Essentially, you operate as an LLP but you do not risk losing the limited liability status, which may occur in a LLP if the limited partner materially participates in the operations of the business. In an LLC, each member can participate to any degree and retain the limited liability protection.
Let me clarify, if you have payroll, it is identical in an LLC or a S-corp.
MY POINT IS YOU CAN AVOID DEALING WITH PAYROLL
READ A BOOK ON INC.
trust me if you will deal with the beurocracy of state paytol tax you will grow old fast...
Yes, you can avoid it, but having a steady pay check can work wonders when purchasing on credit. Being an employee or your company instead of self-employeed smooths out a lot of wrinkles on credit apps.
For me paying someone $25 a month to run payroll on QuickBooks isn't a big deal when I weigh the benefits. Also, since you are going to be taxed on the profits whether you pocket them or not, well you get the idea. Sorry your state is so hard on you, all it takes here in Colorado is an entry in quick books and a touch tone phone call to the state once a month. [ Edited by The-Rehabinator on Date 11/25/2003 ]
all valid points..
I used to do my own books and my wife is an accountant but you can 'farm' anything out. Incidentally didn't Intuit raise the payroll l to $50/month - that's when I closed my corporation and told the to piss off.(circa 2002?)
[ Edited by andrasnm on Date 11/25/2003 ][ Edited by andrasnm on Date 11/25/2003 ]
To be honest with you I don't know if Intuit charges anything for payroll, I am not using their payroll service if that is what you mean, I don't know if they have a payroll service or not.
Payroll is done locally through my copies of Quick books on my computers. I do know that my subscription for my tax tables is using my CPA's Quick books license so if there is a charge perhaps she is paying it once and is letting all her clients which includes me, use it for free?
Payroll was set up by my CPA on my computers using the local copies of Quickbooks, all we do is go in and print the checks and make the call to the state, or maybe she is calling the bank to set the witholding aside. Sorry, I don't know all the details other than it takes about 5 minutes total.
Quote:
On 2003-11-25 09:55, kmkdn wrote:
andrasm is right. As an accountant, an LLC is the best structure to operate from.
This quote stuns me. How can you make such a claim without knowing a persons particular situation?