ECN Electrical Forum - Discussion Forums for Electricians, Inspectors and Related Professionals
ECN Shout Chat
ShoutChat
Recent Posts
Increasing demand factors in residential
by tortuga - 03/28/24 05:57 PM
Portable generator question
by Steve Miller - 03/19/24 08:50 PM
Do we need grounding?
by NORCAL - 03/19/24 05:11 PM
240V only in a home and NEC?
by dsk - 03/19/24 06:33 AM
Cordless Tools: The Obvious Question
by renosteinke - 03/14/24 08:05 PM
New in the Gallery:
This is a new one
This is a new one
by timmp, September 24
Few pics I found
Few pics I found
by timmp, August 15
Who's Online Now
0 members (), 265 guests, and 15 robots.
Key: Admin, Global Mod, Mod
Previous Thread
Next Thread
Print Thread
Rate Thread
#27019 06/28/03 03:58 PM
Joined: Jan 2003
Posts: 45
M
Member
For those of you that are heading your own registered business, I was looking for some comments.

Since I am about to launch my own company, and become legit, I have done all the research about Corporations,both S and C types, LLC's, etc.

It would seem that for an electrical contractor the obvious choice is the corporation. S type at first, to take advantage of startup costs on my personal taxes until I make a reasonable profit (god willing [Linked Image]), then convert to C type to keep the profits off my personal taxes.

I do not wish to have a partnership of any type, and there seems to be many advantages of the Corp over an LLC.

Aside from reading books, I was looking for some first hand experienced comments and advice from those of you out there that went thru it.

Thanks.

#27020 06/28/03 06:02 PM
Joined: Apr 2002
Posts: 914
E
Member
I did a C corp from the start. It was just the way I was advised, however I don't think there's anything wrong with an S corp. I withold taxes from my paycheck and give myself a W-2 just like any other employee. I think it makes it easier to keep staight what's mine and what's the company's. Ask your CPA and an attorney.

#27021 06/28/03 07:13 PM
Joined: Jul 2002
Posts: 680
W
Member
I run a C corp also. Give myself a monthly salary, at the end of my fiscal year I give myself a bonus(esentially empty bank account) thru payroll to avoid paying corporate taxes. My business never seems to make money [Linked Image]
I also make sure I do everything as my company and not as me to try and limit liability. Unfortunately I'm probably still on the hook

#27022 06/28/03 07:43 PM
Joined: Oct 2000
Posts: 5,392
S
Member
MONOLITH, check out score ,a dept of the SBA that will give you free advice on the subject.

of interest to you may be the fact that you as one entity can be many S-corps, ergo you may rent/lease from yourself on paper...

#27023 06/28/03 10:23 PM
Joined: Apr 2002
Posts: 914
E
Member
quote from Walrus: "My business never seems to make money"

LOL, It's amazing, my company never seems to show a profit either. Only had to pay corporate taxes 1 year and learned to never make money again. [Linked Image]

#27024 07/07/03 07:48 PM
Joined: Dec 2001
Posts: 201
A
Member
Lets just hope 'Big Brother' doesn't read these posts

#27025 07/07/03 09:02 PM
Joined: Apr 2002
Posts: 914
E
Member
Big brother can read all he wants, I'm not doing anything illegal. Just making sure transactions are timed right. My company has never been audited, but I'm sure it would hold up.

#27026 07/07/03 11:50 PM
Joined: Feb 2002
Posts: 375
G
Member
MONOLITH ---

There is very little advantage of one form of organization over another.

Ask your CPA what the difference in preparing your taxes will be. He can probably advise you best.


Link Copied to Clipboard
Powered by UBB.threads™ PHP Forum Software 7.7.5