Are You Set Up As A Sole Proprietorship, LLC, Or S-Corp?

What Type Of Entity Are You Set Up As?

  • Sole proprietorship

    Votes: 95 23.4%

  • LLC

    Votes: 184 45.3%

  • S-Corp

    Votes: 98 24.1%

  • Other

    Votes: 29 7.1%
  • Total voters
    406
I was setup as an LLC for a long time and I know quite a few large corporations that are setup as LLCs. It's great because with an LLC you can structure any kind of business entity that you want. If also allows you to decide how you want to be taxed.

I mentioned to somebody that my company was setup as an LLC and they (probably not knowing how businesses work) made the comment: "oh, so you're not really a corporation?"

Well, that didn't go over well with me, so I changed my business to an S-corp. Personally, it made absolutely no difference, other then the fact that I can say that I'm a corporation...

Either way, the tax structure is great as an s-corp. You can spend all the money you want in your corp and whatever is left gets flowed to you. Year after year I received $5k + in tax returns and never paid $100 in taxes.
 


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s-corp... it was originally set up for another of my businesses with partner. instead of partnering under the standard LLC umbrella, we formed an s-corp for each of us & the s-corps (rather than us personallly) were the members of the LLC. the combination offered the best of both worlds in terms of limited liability and curtailing excess SE tax. profits flowed out of the LLC into each s-corp, then out of the s-corps to us individually.
 
I operate as a sole proprietor simply because I don't really need too much protection when running my ring of affiliate sites as I'm not liable for many things.

However, I am creating either an LLC or S-Corp for my SEO & ORM company.
 
rawr. sorry to bump an old thread. but i'm in a transition of switching over to S-Elected LLC. and had some questions...

I Recently started using an accountant, but just wanted to know some basic stuff? so i don't get taken advantage of.. (my azn insecurity-ness)

so i read that you pay yourself a reasonable salary. how much do you guys usually pay?

and how often do you guys take out the rest of the monies as disribution or dividends? quarterly? or annually? or does it matter? I feel like i won't be able to touch my monies freely.... by doing things this way.. :(

and to be on payroll.. does your acct handle all that? or how do i do this?

I'm going to meet up with my acct again very soon, but i wanted to gain some basic knowledge so i know where it's going....

any input would be appreciated, gay webmasters!

Churrr!
 
Ok, I see why Hedge Funds are mostly set up as LLC's as AF Marketers it would make more sense to set up S-Corp.

Im taking my enterprise an S-Corp.
Great Thread!
 
just got done with my taxes for last year's.

and just found out that my tax guy was an EA.

do you guys reocmmend getting a CPA or an EA?
 
IMO, CPA > EA

They will also charge more, but they have more training and overall business management expertise. If your taxes are simple, an EA may be fine. Both are able to represent you before the IRS.
 
From my research so far it seems like the LLC taxed as an S- corp my be best for my business situation. I am in the process of importing some things and will be bootstrapping by reinvesting profits back into the business and not taking a penny out as I have a full time job that pays my living expenses. I don't want to pay the self employment tax on the profit since it's being put back in the business continuously and the s corp seems to get around this. I have an appointment with an SBA rep next week.
 
bizkiller said:
just got done with my taxes for last year's.

and just found out that my tax guy was an EA.

do you guys reocmmend getting a CPA or an EA?
Click to expand...

If you are an affiliate or network you may be best suited to hire an attorney. Not only can they form the entities and draft legal paperwork, but the attorney-client priveledge exists. In basic terms, the privelege generally means your attorney cant testify against you. If you dont want your CPA potentially testifying in court about your business an attorney is the way to go. Or hire the best of everything, a CPA and attorney, like myself.
 
abgordon said:
If you are an affiliate or network you may be best suited to hire an attorney. Not only can they form the entities and draft legal paperwork, but the attorney-client priveledge exists. In basic terms, the privelege generally means your attorney cant testify against you. If you dont want your CPA potentially testifying in court about your business an attorney is the way to go. Or hire the best of everything, a CPA and attorney, like myself.
Click to expand...

And the local SBA office also offers workshops periodically with attorneys and CPAs who volunteer their time to answer business related questions. I have appointments with both next week as I'm still in the process of vetting some CPAs and attorneys for the long haul.
 
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