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What's better to incorporate as?

LLC or Sub-chapter S corporation?

It depends on your individual situation. We consulted with both a lawyer and a CPA (pay someone - don't ask a friend-of-a-friend), and decided on an LLC.

That's the problem. Lawyers will tell you S corp, and accountants usually say LLC.

Hmmm... Can you have multiple trade names under LLC? I don't think you can. What if you make 7 figures a year? Does LLC really provide the assets protection you need (or want)? Or doesn't it matter what your income is.

www.nolo.com

all you need to know

Quote:

Originally posted by hybrid
www.nolo.com

all you need to know

:thumbsup

S-corp and llc are essentially the same.

-They both give you the same personal liability protection, which is the main reason to do either.

-You pay personal taxes only on the income from both types (no corporate tax).

-The cost to setup an LLC is around $100 (in my state anyway) and the cost for an s-corp if you have your lawyer do it should be no more than around $500.

-The major difference is that an s-corp requires that you distribute shares (you can hold 100% of the shares). You are also required by law in most or all states to hold an annual board meeting (this is bs, you just have to document that you held the meeting even if it is with yourself).

Hope that helps, but in the end I would still visit your lawyer.

LLC's also don't have restrictions on the number of members and member units can be held by foreign entities.

Quote:

Originally posted by FreeNetPass Dave
S-corp and llc are essentially the same.

-They both give you the same personal liability protection, which is the main reason to do either.

-You pay personal taxes only on the income from both types (no corporate tax).

-The cost to setup an LLC is around $100 (in my state anyway) and the cost for an s-corp if you have your lawyer do it should be no more than around $500.

-The major difference is that an s-corp requires that you distribute shares (you can hold 100% of the shares). You are also required by law in most or all states to hold an annual board meeting (this is bs, you just have to document that you held the meeting even if it is with yourself).

Hope that helps, but in the end I would still visit your lawyer.

Yep. This helps a lot. I just contacted my lawyer before reading this post, and he said what you just did almost verbatum. S corp does seem the more professional way to go, and as predicted, that's what he recommends. I'm not even gonna bother talking with my accountant. I know what he'll say already.

:winkwink:

I'd suggest setting up a Nevada corp thru one of the services that handles all the grunt work -- meetings minutes, business licenses, registered agent etc. Be smart and do it in Clark County, Vegas isn't the best place to do it right.

unless you live in nevada you still have to pay the state taxes from whatever state you are operating in though.