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re: Who here has started their own business?
Posted on 5/14/18 at 9:42 pm to LSUShock
Posted on 5/14/18 at 9:42 pm to LSUShock
This is a great thread and very relevant to my life right now. Thanks everyone for the candid feedback/advice.
I would love to hear the pros/cons of setting up an S-Corp vs. LLC. I’m guessing it depends on the business you’re setting up, so let’s say it’s in marketing services with low overhead.
I would love to hear the pros/cons of setting up an S-Corp vs. LLC. I’m guessing it depends on the business you’re setting up, so let’s say it’s in marketing services with low overhead.
2
Posted on 5/15/18 at 6:42 am to Mizzou
We're an LLC but we are treated as an S-Corp for tax purposes. I draw a regular salary and take disbursements as allowed. I get a W-2 at the end of the year. However, if I leave profits in the company I am still responsible to pay taxes on those profits whether they are disbursed to me or not.
Posted on 5/15/18 at 7:42 am to Mizzou
LLC is just a hybrid entity where you can choose how you want to be taxed (e.g. partnership, s-corp). Just starting out I would roll as a sole proprietor since a single member LLC isn't going to offer you asset protection in 95% of US states.
Once you turn a profit you can then look at whether you want to stay as a sole proprietorship or form an S-Corp. No need to jump into those complexities until you start turning a profit or you're doing some high liability work.
As a sole proprietorship you still can take advantage of the new 20% deduction for qualified business income with the new tax Act and there are little to no fees when it comes to setting up a sole prop.
Once you turn a profit you can then look at whether you want to stay as a sole proprietorship or form an S-Corp. No need to jump into those complexities until you start turning a profit or you're doing some high liability work.
As a sole proprietorship you still can take advantage of the new 20% deduction for qualified business income with the new tax Act and there are little to no fees when it comes to setting up a sole prop.
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