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Very good comments above that should have answered you question. I just started a blog at Los Angeles Accountants Blog that provides tax tips and I plan on writing an article on entity selection if you ever want to visit.
Posted by Pamela Kornish, Monroe, Washington | Nov 07, 2007
To Incorporate or Not>?that is the question
okay so I was,once upon a time not so long ago a full time professional recruiter. To develop and market my business I incorporated,having been given the advice from several people at the time that it was the next logical step along the path to what was supposed to be a long and successful career.Well.... I did not have any employees ,nor was I ever planning on it. Then after a serious illness forced me out of full time business the question came up as to why I had incorporated at all? Again, I was advised poorly. Not so much for the fact that I should incorporate as the KIND of incorporating I did. I went "C" corp, but now in reviewing this it seems that designation no longer fits. I was considering changing over to a S-Corp, but wanted to know what the advantage would be in possibly foregoing S-Corp to go with an LLC? Anyone can jump in any time ---I welcome your comments/suggestions.Thanks!
28 Bizniks have posted replies
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Posted by Shaun Lawrence, Irvine, Los Angeles, California | 3 weeks ago -
Posted by Tommy Jaye, Burlington, Iowa | 3 weeks agoLLC is best with an S Corp. (assuming you qualify) election for federal taxation purposes. Liability protected pass-through entities offer maximum protection along with valuable tax benefits. S Corp. will avoid the double taxation issue; do not transfer real estate or other valuable assets to your corp. (C or S); keep them separate from your operating company (asset protection). If necessary, put them into a grantor-type trust for liability protection and make sure that you have adequate insurance coverage.
Check your state for LLC requirements since some states do not allow for single member entities.
Also, compare personal tax rates to corporate tax rates and determine what constitutes taxable income within your state before pulling the trigger.
Pretty simple isn't it Pam? LOL
By the way, you can do this all by yourself and save $$$$ or go to legalzoom.com and save as well.
Good Luck,
Tommy Jaye, CPA, CEO SmallBizHelper1@aol.com
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Posted by Shaun Lawrence, Irvine, Los Angeles, California | 6 days ago
It looks like you got what you needed from the experienced CPA and other above. If you have any questions still you can shoot me an email and I can answer for you. Shaun Lawrence, LA CPA
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