I already have a small business and it's an S-Corp. My brother in law is interested in starting another aspect of our business. If he buys into the business should I change it to an LLC or should I turn it into a separate business?
2006-10-05 12:34:40 · 3 answers · asked by toobusy 3 in Business & Finance ➔ Small Business
Here's a link that may help.
2006-10-05 13:32:19 · answer #1 · answered by Hank 3 · 0⤊ 0⤋
Hello
Well it sounds like you maybe expanding the business and if that is the case you may no longer need it to be an s-corp. Therefore I would recommend reorganizing the business as either a C-corp, LLC or LLP ( limited liability partnership ).
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2006-10-05 20:22:52 · answer #2 · answered by Boomn - www.boomn.com 1 · 0⤊ 0⤋
it completely depends on your business, and what youre looking to do.
an LLC has some advantages, but at tax time there are disadvantages. with an LLC theres no ownership restrictions and you can distribute profits however you see fit. but at tax time your entire NI is subject to self-employment tax...where as with a corp, only the owner's salary is subjected to it.
this may be something to review with your lawyer.
personally, i would make it another business---that way everything is separate and i can easily see the impact its having on my current business...but im not a lawyer or an accountant or a business expert...just a junior in college who still has a lot to learn :)
2006-10-05 19:51:50 · answer #3 · answered by xtcwmeg 3 · 0⤊ 0⤋