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#27019 - 06/28/03 03:58 PM Corp. vs LLC, etc.  
MONOLITH  Offline
Member
Joined: Jan 2003
Posts: 45
Pennsylvania, USA
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.


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#27020 - 06/28/03 06:02 PM Re: Corp. vs LLC, etc.  
Electric Eagle  Offline
Member
Joined: Apr 2002
Posts: 914
Alpharetta, GA
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 Re: Corp. vs LLC, etc.  
walrus  Offline
Member
Joined: Jul 2002
Posts: 680
Bangor Me. USA
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 Re: Corp. vs LLC, etc.  
sparky  Offline
Member
Joined: Oct 2000
Posts: 5,308
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 Re: Corp. vs LLC, etc.  
Electric Eagle  Offline
Member
Joined: Apr 2002
Posts: 914
Alpharetta, GA
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 Re: Corp. vs LLC, etc.  
ayrton  Offline
Member
Joined: Dec 2001
Posts: 201
Pa
Lets just hope 'Big Brother' doesn't read these posts


#27025 - 07/07/03 09:02 PM Re: Corp. vs LLC, etc.  
Electric Eagle  Offline
Member
Joined: Apr 2002
Posts: 914
Alpharetta, GA
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 Re: Corp. vs LLC, etc.  
George  Offline
Member
Joined: Feb 2002
Posts: 375
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.



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