Incorporating - quick guide/info



Looks like papa john's good for more than just pizza he he he he he he he he he he he he he he why is everybody always staring at me?
 
So which option basically allows me to keep as much of my money from the IRS as possible legally? If making under $5K per month?
 
Can we get that in laymans terms? I see the chart and everything but it doesn't really tell me anything else.

As Funds said: which one will save me more money? Making less than 50k a month.
 
BluAffiliate said:
Can we get that in laymans terms? I see the chart and everything but it doesn't really tell me anything else.

As Funds said: which one will save me more money? Making less than 50k a month.
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most of it is pretty self explanatory, what part did you need in layman's terms?
 
Ok, looking at it I think an LLC would be best for me. Could you explain this tidbit a little please?

Code: 
[SIZE=3]No tax at the entity level. Income passed 
through to members.
[/SIZE]


I mean the only reason I'd make one is for tax purposes so this seems to defeat the whole point. Or am I just being retarded?
 
the corporate entity itself doesn't pay income tax, income is passed to the owners/partners/members, and it's paid on personal income tax forms (plus self employment tax I do believe.). now as for the benefits of incorporation and getting taxed less there's other ways to do that involving dividends. anyone want to jump in on that?
 
business - The Many Benefits of Forming an LLC
If the owners of the LLC want to keep the business's profits in the LLC in order to facilitate the growth of the business, the preferred option is a C corporation. Under this form, the LLC's profits will only be subject to the beginning corporate tax rate of 15 percent-presumably less than the owner/member's personal marginal income tax rates. And if any of the LLC's owners/members want to receive compensation, they can be paid W-2 wages for their business-related work efforts.
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http://www.forminganllcguide.com/Tax_Benefits_of_an_LLC.htm
LLC’s are taxed as partnerships by the state as well as on a federal level and the members (owners) will only pay one level of tax.
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I'm sold at any rate. I've been thinking about this for a while but was wondering if it was worth the bother. Thanks!
 
You can get the tax advantages of an S-corp by forming an LLC and electing to have it taxed as an s-corp, or change from a passthrough to s-corp taxation at a later time. If you're not making enough where paying yourself a full time salary in an s-corp would leave extra money on the table to be taxed lower, might as well start as a passthrough LLC. You'll also have to deal with payroll taxes if you're being paid as an employee under the s-corp - Just get a good accountant, and let the accountant do the work. A good accountant will also advise on the proper business form, as well as advise on related issues (such as having owners in multiple states, and the registration/tax implications there).
 
nickycakes said:
talk to an accountant ASAP regardless of your income level in the business. that is the ONLY tax advice you should be listening to on wickedfire, and i wish i had sooner rather than later.
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it doesn't hurt to learn more, regardless. talking to an accountant/lawyer is important, but getting info before you go in is good too.
 
papajohn56 said:
the corporate entity itself doesn't pay income tax, income is passed to the owners/partners/members, and it's paid on personal income tax forms (plus self employment tax I do believe.). now as for the benefits of incorporation and getting taxed less there's other ways to do that involving dividends. anyone want to jump in on that?
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This is correct. An LLC itself does not pay taxes. The owner/member would. For example, with your LLC, you pay whatever federal tax you owe, plus 15.3% self employment tax. (and whatever your state may have),.... BUT this is all on a personal level.... so if you bought a new house and got a tax credit... you can use that towards the LLC taxes.... full time college student? You can use that towards the LLC taxes.


ANYHOW, Talk to a Accountant/CPA and find one that doesn't charge you to even talk to them. I had one guy try to pull me in his office just to talk for $178 an hour. Fuck that.
 
070707 said:
This is correct. An LLC itself does not pay taxes. The owner/member would. For example, with your LLC, you pay whatever federal tax you owe, plus 15.3% self employment tax. (and whatever your state may have),.... BUT this is all on a personal level.... so if you bought a new house and got a tax credit... you can use that towards the LLC taxes.... full time college student? You can use that towards the LLC taxes.


ANYHOW, Talk to a Accountant/CPA and find one that doesn't charge you to even talk to them. I had one guy try to pull me in his office just to talk for $178 an hour. Fuck that.
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from your experience, is the 15.3% Self employment tax able to be deducted from, or is it fixed? and I plan on talking with an accountant, just have been wanting to learn more prior. Including how subsidiaries work, and if it's best to start a C or S corp, and then have LLC subsidiaries, or have an LLC with other LLCs as subsidiaries. Confusing stuff
 
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