cleaning company corp type

[felipe316]

If I want to incorporate a cleaning company what is the best way to do it? I mean, talking about Taxes, it is LLC the best option? Or what is the best one? The idea is, at the beginning, work with no more than 10 employees in the New York State.


thanks

 

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[andviv]

Will you have partners?
Are you planning to have employees or Independent Contractors?

 

[Megan H]

Hi Felipe,

The answer depends on a couple of things, most notably your income. If you expect to earn $300k+, then a C Corporation, or an LLC that elects C Corp taxation is a good bet. If you expect to take home less than $300k per year, an S Corporation, or LLC taxed as an S Corporation will give you better tax benefits.

Of course, in New York, state taxes will also factor in. Corporations typically pay about 6.85 to 7.5% on earned net income. S Corps calculate their franchise tax differently; it comes out to somewhere between $100 and $800/year. And LLCs are different again, but for this purpose you'd be going with C or S Taxation.

Hope this helps,

Megan H

 

[felipe316]

Megan

Thank you for the valuable information

Luis Felipe Vivas
Felipe316

 

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[Megan H]

You're welcome

Let me know if you need help with the paperwork. My business helps others to get set up in all 50 states, plus we offer bookkeeping, accounting and tax services, and general business advice/assistance.

Megan H