It's not ridiculously expensive... I pay my accountant $600 a year to manage everything involved with keeping both of my corporations legal & clean on the books.
- Hakrjak
- Hakrjak
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Free registration at the forum removes this block.Also, I wanted to have an EIN and no a one person llc can't get one... I wanted to be able to build credit and eventually get loans for the corp, if you dont have an EIN that isn't possible right (If i formed LLC)
also could you breakdown all of the taxes specifically if I did the LLC, you would have federal, state, and I been wondering about county, also with the llc do you do any kind of extra taxes like unemployment, or something else i dont know about?
A one member LLC can get an EIN - Form SS-4. I'm curious where you are getting your information - I really recommend that you get an experienced advisor and read some books (other than IRS literature - which is practically incoherent) to help you because it seems like you've gotten some incorrect advice.
For a beginning business: typically LLC taxed as an S Corp or an S Corp itself
In general, I like to use an LLC electing to be taxed as an S or as an C, instead of just owning an S or C directly.
Businesses almost always should be an S Corp or a C Corp...or LLC electing to be taxed as an S Corp or C Corp. That's because if you use just a straight LLC, you'll have self-employment tax of 15.3%. Corps don't have self-employment tax.
Is 30k the limit before you have to pay payroll taxes or were you just saying that from what I said?... either way that is great. I read somewhere ( not sure exactly where) ...(3) You don't need to do payroll (so no payroll tax issues) if your income is loss to $30K.
. Although FICA tax is not owed on distributive shares, the IRS and equivalent state revenue agencies may recategorize distributions paid to shareholder-employees as wages if shareholder-employees are not paid a reasonable wage for the services they perform in their positions within the company.
You may also need a business license - check with your city or county municipality on that.
The jurisdiction for s-Corp is the state is which it has its physical headquarters. A company could incorporate in Delaware but be located in Virginia. The company would have to register in Virginia and operate under the law of Virginia, paying Virginia annual fees and taxes in addition to annual fee for Delaware. Its business relations beyond Virginia should, in any of its agreements or contracts, indicate that Virginia is the state law that will rule the agreement. The jurisdiction will always be the state where it has its primary physical location. This is a good question because some s-Corps do a lot of business outside the state of their jurisdiction.
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