Register

If this is your first visit, please click the Sign Up now button to begin the process of creating your account so you can begin posting on our forums! The Sign Up process will only take up about a minute of two of your time.

Page 1 of 2 1 2 LastLast
Results 1 to 10 of 12
  1. #1
    Member mattwise's Avatar
    Join Date
    Jan 2004
    Location
    Orlando, FL
    Posts
    57
    Member #
    4655
    How many of you guys/gals have a company of some sort to limit your liability?

    I'm searching around for names for a company that I want to create and looking at a bunch of web design "companies" that I can't find any more information other than what's on their site. It almost seems as if people create these so-called "companies" but all they are are websites with the owners running the show and no actual company behind them. I wonder how they report income on taxes?

    I'm considering an LLC to protect myself and give the web presence credibility and substance. Incorporating seems like too much of a hassle, no need for that. Partnerships don't provide liability coverage. An LLC seems to be the way to go - best thing is to report income it just goes on your W-2 (i'm from the U.S.).

    Thoughts?

    ~mattwise

  2.  

  3. #2
    Member Juvenall's Avatar
    Join Date
    Sep 2004
    Location
    #!/usr/bin/Detroit
    Posts
    67
    Member #
    7716
    Exactly how you form your company depends on what your situation is. The biggest problem many people face when they go the LLC route is the double taxation. Since your business is considered it's own separate entity and is therefore subject to taxes on what it makes. The LLC then pays you which is also subject to taxes.

    What I did with my company was to file as an "S Corporation". This gives me a little leverage with the IRS in that in a corporation, wages are tax deductible. Since all the income from the business is used either to buy equipment, marketing/client relations (all tax deductions) or pay me, the taxable income of the company is a big, fat $0.

    That's really just a short version and things like this should be mulled over with a good tax attorney (I prefer them over accountants. They cost a little more, but good ones know awesome legal loopholes and also count as a tax deduction..lol) to figure out what's going to work best for you. :-)
    Juvenall Wilson_______[juvenall@gmail.com]_________________
    Forum Directory - ForumFox.com
    YaBB Project Admin/Former allmusic.com designer

  4. #3
    Senior Member raspberryh's Avatar
    Join Date
    Aug 2004
    Location
    Erie, PA
    Posts
    882
    Member #
    7208
    Liked
    1 times
    I file as an independent contractor.
    choosy developers choose gif!
    website | paintings | blog

  5. #4
    WDF Staff smoseley's Avatar
    Join Date
    Mar 2003
    Location
    Boston, MA
    Posts
    9,729
    Member #
    819
    Liked
    205 times
    As Juvenall stated, a subchapter S Corporation has significant advantages over LLCs and C Corps.

  6. #5
    Member mattwise's Avatar
    Join Date
    Jan 2004
    Location
    Orlando, FL
    Posts
    57
    Member #
    4655
    Advantages: LLCs, like corporations, provide business owners with liability protection...that's a step up from partnerships and sole proprietorships when your personal assets may be used to settle a business debt.

    Unlike corporations, LLCs don't suffer from double-taxation, in which the corporate entity is taxed and then its shareholders' dividends are taxed as well. This benefit applies to LLCs that are classified as partnerships for tax purposes. An LLC tax preparer simply checks a box on his or her federal return to indicate how the organization will be taxed. Some states' tax laws mirror the federal government's treatment of LLCs.

    Earnings and losses pass through to the owners and are included on their personal tax returns.


    Source: http://www.bankrate.com/brm/news/biz...s/20000831.asp

    LLC's don't get double taxed. What you make through your company shows up on your tax filing at the end of the year (err, April in the US).

    The LLC’s income is not taxed at the entity level; however, the LLC does complete a tax return. The income or loss of the LLC as shown on this return is “passed through” the LLC and is reported on the owners’ individual tax returns.

    Source: http://www.websitepublisher.net/arti...ess_entities/2

    I'm pretty sure an LLC is basically the same as an S Corporation when it comes to taxation. However, I like how the Corp. pays you (salary) so its income is basically 0, meaning no taxes on it. I'm wondering if this is the same thing that happens with an LLC? Anyone have experience with an LLC here? S Corp may be another option as well.

    Thanks for the replies!

    ~mattwise

  7. #6
    Senior Member foodbiz's Avatar
    Join Date
    Apr 2003
    Location
    Los Angeles
    Posts
    484
    Member #
    1070
    All you need is an S CORP

    Don't over think this process. LLC is too complicated and involes HEAVY paperwork to actually make it a good LLC.
    The S corp you can handle easily or get an attorney to handle the paperwork for a few hundread.

    If you need a good lawyer send me a PM and I will give you her phone number

  8. #7
    Senior Member glyakk's Avatar
    Join Date
    Nov 2003
    Location
    USA
    Posts
    1,263
    Member #
    3828
    Liked
    6 times
    LLC's are being positioned in the US to replace S corps. They do share the same tax benifits(ie NO double taxation) and protections. But as stated LLC's tend to have more paperwork, but I do prefer them. But I would not start one up without a lawer to write your articles of organization or at least go over them with you. The articles of organization are basicly the laws of your company, its a document prepared by you that say how you want to run your organization. This is unlike a regular coportation where there is a formal structuer you must abide by. This might not be so much a benifit to some, but it is the only way I would go. Some other small differences between s corp is in an s corp you cannot have any non united states owners, you cannot be owned by a c corp, blah blah blah..

    Basicly it boils down to flexability, LLC's are being positioned to replace S corps in the US. However, one thing you might need to consider, in some states you need at least two people to start an LLC, where as a any corporation you need only one, but that one person has to take multiple positions such as owner, ceo, treasure since that is one formatlity inherite to corporations.


  9. #8
    Senior Member
    Join Date
    Mar 2004
    Posts
    1,518
    Member #
    5220
    So what your saying is that a company has to have more than one emplyee? A Sole Trader is still a company and is just one person!
    Rednerve
    Creative Freelance Design

  10. #9
    Senior Member foodbiz's Avatar
    Join Date
    Apr 2003
    Location
    Los Angeles
    Posts
    484
    Member #
    1070
    Quote Originally Posted by glyakk
    LLC's are being positioned in the US to replace S corps. They do share the same tax benifits(ie NO double taxation) and protections. But as stated LLC's tend to have more paperwork, but I do prefer them. But I would not start one up without a lawer to write your articles of organization or at least go over them with you. The articles of organization are basicly the laws of your company, its a document prepared by you that say how you want to run your organization. This is unlike a regular coportation where there is a formal structuer you must abide by. This might not be so much a benifit to some, but it is the only way I would go. Some other small differences between s corp is in an s corp you cannot have any non united states owners, you cannot be owned by a c corp, blah blah blah..

    Basicly it boils down to flexability, LLC's are being positioned to replace S corps in the US. However, one thing you might need to consider, in some states you need at least two people to start an LLC, where as a any corporation you need only one, but that one person has to take multiple positions such as owner, ceo, treasure since that is one formatlity inherite to corporations.

    Nicely Put!!!

  11. #10
    Senior Member echoSwe's Avatar
    Join Date
    May 2004
    Posts
    332
    Member #
    5926
    What's your company tax in USA?
    Of the TR (Total Revenue) of a company here in sweden we can make deductions from the tax by having company representation (which really isn't much to deduct) and by travelling etc - but of course this costs - so it's really not much of a gain by doing it, except perhaps a few free meals.

    Then if you have a private firm, and take the profit out of the company to spen yourself we have a tax of 60%, which is really much. The tax varies so that the more you make, the higher proportion of your income you pay in tax. (This really suxxx!!) So since 'everyone' say that USA has so low taxes I was wondering..

    //Henke


Page 1 of 2 1 2 LastLast

Remove Ads

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Search tags for this page

distribuidor en miami de detroit forming

Click on a term to search for related topics.
All times are GMT -6. The time now is 10:47 AM.
Powered by vBulletin® Version 4.2.3
Copyright © 2019 vBulletin Solutions, Inc. All rights reserved.
vBulletin Skin By: PurevB.com