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Post by benji on Mar 15, 2019 22:53:25 GMT -5
I know both have there own advantages, but I just need to know what to sign up for 😆😆
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Post by 90GTVert on Mar 16, 2019 4:43:34 GMT -5
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Post by benji on Mar 16, 2019 11:01:29 GMT -5
see, I figured LLC was better. I went on that calculator you posted, and it says LLC is better. But for some reason, a couple of guys in my position chose S Corp. I asked them why, and they said "I left it to the tax lady and that's what she chose" so I'm wondering if there's something about S Corp that is better. |
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Post by oldgeek on Mar 16, 2019 12:11:06 GMT -5
From what I understand there is not much of a difference. With s corp you MAY be able to keep a little bit more of your money. We are an LLP for 10 years now.
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Post by lilpinny on Mar 16, 2019 14:21:29 GMT -5
I looked at it years ago. From what I remember I was going to go with S corp. An LLC you are treated and taxed like a sole proprietorship, if you its just you. An S corp you are an employee and you give yourself a salary. There are benifits to doing that when it comes to taxes. I kinda comes down to will you make more money than you would pay yourself in salary? If yes, S corp, if no (you are going to take it all) then LLC as a sole proprietorship. And you can change your tax status as an LLC, so mid year you can change to an LLC that’s taxed as an S corp... so if you can save on some taxes, change.
But it all comes down to how you pay taxes, and on what amount.
i do that calculator and I get s-corp
“Advantages of an S Corporation
Owners (shareholders) are typically not personally responsible for business debts and liabilities.
S corporations allow for pass-through taxation.
S corporations may have self-employment tax savings over LLCs.
Capital can be more easily raised through sale of stock (as long as IRS guidelines are met).“
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Post by benji on Mar 16, 2019 21:06:35 GMT -5
Thanks everyone. I think I'm gonna do LLC, for now at least. If I get big enough I might change it.
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Post by lilpinny on Mar 16, 2019 21:47:43 GMT -5
Thanks everyone. I think I'm gonna do LLC, for now at least. If I get big enough I might change it. You can always stay an LLC but change the way you are taxed to an S corp later. I’d start as a regular LLC too. |
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Post by lordhater on Mar 17, 2019 10:35:10 GMT -5
I'm an llc
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