my accountant told me that i should open LLC and then elect it to the S corporation for tax purposes. i dont really know what this means and would like to learn more about it. My accountant can do it but he wants to charge so much, i think its to overpriced for this level of work, and would like to do it on my own.
2007-03-24 11:56:09 · 5 answers · asked by mvp 1 in Business & Finance ➔ Other - Business & Finance
Research, research, research – this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:
* Ultimate Book of Forming Corps, LLCs, Partnerships & Sole Proprietorships by Michael Spadaccini
* LLC or Corporation?: How To Choose The Right Form For Your Business by Anthony Mancuso
* Legal Guide For Starting & Running A Small Business (8th Edition) by Fred S. Steingold
There are plenty of free informational resources out there. Check the source box for links to articles & sites.
Hope that helps! I wish you much success & happiness in all your ventures!
2007-03-28 04:51:38 · answer #1 · answered by TM Express™ 7 · 0⤊ 0⤋
Are you sure that he said open as an LLC? An LLC isn't a corporation, so that option isn't available to you. I'm sure he said incorporate and then convert to an S Corp. An LLC is really a partnership with corporate features; i.e., protection of shareholders from lawsuits, bankruptcy, etc. Without knowing more of the particulars of your business, it is impossible to tell if any of the three structures are appropriate. Call him up and ask him if you misunderstood him about the LLC thing.
2007-03-24 16:01:40 · answer #2 · answered by Scott K 7 · 0⤊ 0⤋
An S corporation does not pay taxes at the corporate level like a traditional C corporation. The income "passes through" to the owner to avoid double taxation. It sounds like your accountant already laid out the framework of your business entity for free.
2007-03-24 14:05:38 · answer #3 · answered by RotoGuru78 1 · 0⤊ 0⤋
I think I pay my bean counter too much, too. But I listen to him - and pay him for his services. He is a professional tax return preparer - no, he is not like H&R Block. The different types of corporate structures is like comparing apples and oranges when it comes to the IRS. Listen to what he has to say, and stay out of jail.
2007-03-24 13:47:26 · answer #4 · answered by jim_elkins 5 · 0⤊ 0⤋
i'm a company professional and focus on incorporation. i'm uncertain of what your question is... Is your question no remember if or no longer you'll have a company license on your organization in the journey that your companies important company function is seminars and workshops? i might choose to assist yet want clarification first. thank you!
2016-12-08 10:23:48 · answer #5 · answered by laranjeira 4 · 0⤊ 0⤋