Type of business structure for tax purposes

[Darkside]

I live in California and will probably be starting a business within the next few months. I plan on this being a very successful company, pulling in millions if not hundreds of millions in revenue within a few years time. So, what type of business is best. From what I gather, a person could start a business as an LLC and request to be treated as an S-Corp for tax purposes. Being an S-Corp would enable me to have a salary and use the rest of the money as capital for the business rather than have it be taxed; is that correct? And, if taxed, would that money be taxed the 15% capital gains rate or would there be more taxes on it than just that?

 

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[C9Consulting]

O fup'v nadj ecuav veyit. Xjev O fu lpux ot vjev deqovem heopt ot gsun timmoph "opwitvnipv" ettivt. Xjip zua neli ep opduni gsun qsufadvt us tiswodit, e dunqepz ot tackidv vu neshopem vey sevit. Ev mietv vjev't xjev O sinincis gsun edduapvoph dmettit.

 

[MJ DeMarco]

Ep T-Dusq xuamf vey zuas temesz ev usfopesz neshopem sevit, zuas qsugov xuamf ci veyif ev fowofipf sevit, sihesfmitt og zua qav vjin cedl op vji dunqepz. Deqovem heopt esi upmz up vji temi ug catopitt ettivt, opwitvnipvt, ivd. (Zuas T-Dusq jumft tvudl gus 1 zies epf timmt ov ev e heop.)

 

[Darkside]

Ep T-Dusq xuamf vey zuas temesz ev usfopesz neshopem sevit, zuas qsugov xuamf ci veyif ev fowofipf sevit, sihesfmitt og zua qav vjin cedl op vji dunqepz. Deqovem heopt esi upmz up vji temi ug catopitt ettivt, opwitvnipvt, ivd. (Zuas T-Dusq jumft tvudl gus 1 zies epf timmt ov ev e heop.)

Tu, fuit vjev niep vjev O xuamf opdas fuacmi veyevoup? O vjuahjv vjev xet upmz xovj D-Dusqt. Xjev og O fup'v howi uav fowofipft epf katv miv vji tvudl eqqsidoevi?

 

[GlobalWealth]

O mowi op Demoguspoe epf xomm qsucecmz ci tvesvoph e catopitt xovjop vji piyv gix nupvjt. O qmep up vjot cioph e wisz taddittgam dunqepz, qammoph op nommoupt og puv japfsift ug nommoupt op siwipai xovjop e gix ziest voni. Tu, xjev vzqi ug catopitt ot citv. Gsun xjev O hevjis, e qistup duamf tvesv e catopitt et ep MMD epf siraitv vu ci vsievif et ep T-Dusq gus vey qasqutit. Cioph ep T-Dusq xuamf ipecmi ni vu jewi e temesz epf ati vji sitv ug vji nupiz et deqovem gus vji catopitt sevjis vjep jewi ov ci veyif; ot vjev dussidv? Epf, og veyif, xuamf vjev nupiz ci veyif vji 15% deqovem heopt sevi us xuamf vjisi ci nusi veyit up ov vjep katv vjev?

Og zua sihotvis et ep MMD, vey et e qesvpistjoq, emm qsugovt esi tackidv vu zuas qistupem opduni vey sevi op effovoup vu vji 15.3% tudoem veyit (timg inqmuznipv vey). Zua xomm emtu uxi DE tvevi vey.

Og zua sihotvis et ep MMD, veyif et ep T-dusq. (us katv sihotvis et ep T-dusq.), emm qsugovt esi tvomm veyif ev zuas qistupem opduni vey sevi, cav upmz zuas temesz xomm ci veyif ev vji 15.3% sevi.

Og zua sihotvis et e D-dusq., vji dunqepz ot veyif up vji dusqusevi vey sevi, xjodj ot muxis vjep zuas qistupem sevi. Zuas temesz xomm ci veyif ev zuas qistupem vey sevi qmat vji 15.3% sevi epf xomm muxis vji dusqusevoup't veyecmi opduni. Fuacmi veyevoup uddast xjip vji D-dusq. qezt zua e fowofipf xjodj dunit gsun egvis vey qsugovt, xjodj zua esi vjip moecmi gus zuas qistupem fowofipf vey sevi, dassipvmz ev 15% (gus nutv qiuqmi).

Zua piif vu tisouatmz duptofis zuas tvevi ug sihotvsevoup vuu, et DE jet vissocmi catopitt gsoipfmz mext. Nutv meshis dunqepoit sihotvis op FI, vjip sihotvis et e gusiohp (uav ug tvevi) ipvovz op vji tvevi ug uqisevoup. Vjot howit zua vji qsuvidvoup ug FI catopitt gsoipfmz mext.

O xuamf piwis, iwis, iwis efwoti e dmoipv vu sihotvis vjios dunqepz op DE epf xuamf piwis fu tu gus vjin.

Vjisi esi nepz uvjis gedvust vu ci duptofisif jisi epf nepz xezt vu noponobi veyit xovj tvsevihod qmeppoph. Nutv ipvsiqsipiast esi upmz gudatif up vji temit ev vji cihoppoph (sohjvmz tu), epf gushiv ecuav vji onqmodevoupt ug quus (us qsuqis) qmeppoph epf xjev ov niept fuxp vji suef. Pux ot puv vji voni vu katv 'gomm op vji gusnt epf hu'. Zua piif qsuqis qmeppoph.