I think I fucked up...

[GoogleSearchSux]

Why Maryland?

Edit: My B meant Deleware all those states are the same to me hahaha.

Here is a great resource for you guys starting LLCs. I also used these guys to start my LLC it was a pretty painless process would recommend.

Which State to Incorporate or Form an LLC? Delaware - Nevada - Wyoming (No Dickroll No Aff Link)

 

[tacoX]

Eagle Web Assets is an S-Corp. I'm not at all a fan of LLC's unless it's some small proxy company.

 

[enjoy]

Corporation in Hong Kong for the mother fucking win.

Incorporate in the Seychelles for an even bigger win.

 

[mattfca]

Anyone have any information for Canadians eh?
Im thinking aboot inc

brb beaver chewing on igloo

 

[Danc1122]

S-Corp FTW.

 

[phillian]

She said it would be pretty much impossible to deduct tuition.

If you are a "C" corp, this is a viable deduction.

And the effective tax rates for a sole proprietor and a single person s-corp are basically identical.

This may or may not be true. It depends on your municipality & state regulations. Get a third opinion. If you lived in Philadelphia like me, I could tell you that this is patently untrue. CPA sit-downs should be free; getting you in the door to talk is their price of admission to reaping larger fees on the backend- let them earn their money.

She talked so fast, I wasn't completely sure how she figured that, but she sounded like she knew what she was talking about... My head started spinning when she listed off all the forms and payments I would have to deal with every quarter.

Talking fast is a red flag- esp in the service industry. She should be trying to describe why she believes what she believes in terms you can understand. If she's blowing over the details, I'd wonder a) does she really know what she's talking about? or b) why doesn't she care that her potential client understands whats going on?

To reiterate what was previously said, GET A THIRD OPINION. Moreover, almost no one in this business who does it full time operates as a sole proprietor. There's a reason for this.

 

[ncmedia]

Anyone have any information for Canadians eh?
Im thinking aboot inc

brb beaver chewing on igloo

LOL. Not much different actually - INC or CORP are much like S-CORP or LLC... If you're a Sole P you are better off. There are tax breaks and or dividend spreads etc. for INC's however you have to do a lot of minute books, payroll, quarterly reports, annual fee's, insurance, and your accountant will love you because you'll keep them quite busy/paid. If you need an INC chances are you are doing something right - at that point you might want to look at googling tax consultants in your local area and go have a chat with them.

Haven't seen too much chatter about tax consultants here (not 'good accountants' who may do some consulting, but ppl that specialize in nothing but creative tax consulting) - if they do a good enough job, they take you down a tax bracket or two, or match you up with their other clients who can't claim a loss and you share it creatively, etc. Re the original question - Sole P is the way to go if you're not worried about being 'more protected' and have a clean slate of offers/biz practice. I'm assuming you don't have employees, you outsource/have virtual assisitants and freelancers working for you so you don't need payroll or insurance et al (or do fucking minute books/quarterly BS - looking back I hated having an INC).

N.

 

[transistor]

People with s-corps and LLCs, what is your overall tax rate?

 

[KGL]

You need to incorporate. Then you can set yourself a budget of how much you get paid every week or so. That will get taxed normally. The rest will not get taxed unless you use it for purposes that do not pertain to your business. That sounds like the best option for you. Whoever told you to convert to s-corp is an idiot.

WTF are talking about?

Forming An S-Corporation To Reduce Self-Employment Taxes My Money Blog

 

[Ghazz]

People with s-corps and LLCs, what is your overall tax rate?

That depends on how much you make and what state you are in.

 

[Ghazz]

You need to incorporate. Then you can set yourself a budget of how much you get paid every week or so. That will get taxed normally. The rest will not get taxed unless you use it for purposes that do not pertain to your business. That sounds like the best option for you. Whoever told you to convert to s-corp is an idiot.

You really have no clue how it works. Do some research before posting.

 

[KGL]

You need to incorporate. Then you can set yourself a budget of how much you get paid every week or so. That will get taxed normally. The rest will not get taxed unless you use it for purposes that do not pertain to your business. That sounds like the best option for you. Whoever told you to convert to s-corp is an idiot.

Whoever told you sign up for WF is an idiot. [See what I did there?]

 

[KGL]

Once again, it's not my blog, but read that article.

 

[transistor]

Well, I just got an email from my new CPA. She ran some numbers, and it turns out I will save money by remaining in an s-corp. However, "this saving is reduced when you consider the business tax return and payroll tax returns that will need to be filed."

 

[elgordo]

You still pay quarterly taxes on the dividends you take out from an s-corp.. just not FICA

 

[volknet]

So, I recently coverted my sole proprietorship into an s-corp. I did this because the CPA that did my estimated taxes told me that if I ran as an s-corp, I could pay myself a small wage and pay the rest as dividends, which wouldn't be subject to the 15% self-employment tax. He also claimed I could deduct my college tuition from the business. I was sold.

He wouldn't answer my emails, so I decided to find a new CPA. Today, I visited with her and she claimed that the IRS would rape me if I paid myself more in dividends than wages. Even a 50-50 split would be asking for it. She said it would be pretty much impossible to deduct tuition. And the effective tax rates for a sole proprietor and a single person s-corp are basically identical. She talked so fast, I wasn't completely sure how she figured that, but she sounded like she knew what she was talking about.

I've done a lot of research as well as talked to my CPA about this multiple times.

First, You only have to pay yourself a fair wage for the type of job you're doing. The rest is passed as a distribution.

A REAL life example of a lawyer whose law firm made $16,400,000 in a year. He paid himself a normal lawyer wage of $400,000 and the rest as distributions. Perfectly ok.

You only set a red flag when you are paying your wage well below a normal wage.

A good place to research is salary.com. I pay myself a bit over what is avg just to be on the safe side.

Disclaimer: not an accountant, don't listen to me, etc.

 

[imincognita]

Well, I just got an email from my new CPA. She ran some numbers, and it turns out I will save money by remaining in an s-corp. However, "this saving is reduced when you consider the business tax return and payroll tax returns that will need to be filed."

I have my own accounting practice, so, FWIW...

The CPA that talked you into the S-Corp was an ass, if only for the reasons that he gave you to justify incorporating.

The new one appears to know what she's talking about.

 

[transistor]

I have my own accounting practice, so, FWIW...

The CPA that talked you into the S-Corp was an ass, if only for the reasons that he gave you to justify incorporating.

The new one appears to know what she's talking about.

Can you give me a quick idea of how much I'd save with an s-corp over a s-prop if I made $150k/yr in South Dakota?

 

[transistor]

Purely hypothetically, if I had the Canadian or UK-based companies that pay me send my money to an international bank account, could I completely ignore the IRS?

 

[johnysc430]

Purely hypothetically, if I had the Canadian or UK-based companies that pay me send my money to an international bank account, could I completely ignore the IRS?

yea if you hypothetically want to get in trouble for tax evasion.