Yes Keith, I know you are right and I do indeed plan to find a good tax attorney. And, you confirmed what I have read in several books that S-corps and LLCs are flow-through entities. I just thought maybe there might be a trend among small business web developers as to which model they actually chose for their own businesses.
Keith Aric Hall wrote: > I disagree as well. > > LLCs are not the same as C-Corps. Your point about tax benefit of LLC > vs C-Corp is incorrect as well. The IRS does make a distinction. As I > described earlier, S-Corps and LLCs are flow-thru entities. You do not > pay a corporate income tax. Instead the tax is paid at the individual > level only. > > As for the state of Texas. An LLC is subject to Corporate Franchise > Tax as you alluded. > > Again, my advice is to consult with tax/legal professionals if you > really want to know the best entity to choose for your situation. The > tax code is vast and complex and it changes each and every year. Don't > just rely on information you read in the group threads. Some of it, > though written with good intentions, is just plain inaccurate. > > kah > > On Sat, Aug 22, 2009 at 3:29 PM, Terry Brown > <[email protected] <mailto:[email protected]>> > wrote: > > > Well, except that last part - advice of the SBDC. > > Sent from my iPhone > > On Aug 22, 2009, at 3:07 PM, ferodynamics <[email protected] > <mailto:[email protected]>> wrote: > > > > > The LLC is the more modern form of the corporation. > > > > I think one big difference with LLCs, they don't have shares of > > stock. If you read about corporate shares of stock you'll see there > > are so many potential problems, I personally wouldn't touch that > with > > a 10-foot pole. > > > > The IRS doesn't care if you're an LLC or a Corporation, they see no > > distinction, so no advantage one way or the other--just one big > > disadvantage for LLCs and corps: more paperwork. The "s-corp" is an > > IRS-specific term that has nothing to do with filing your > articles of > > incorporation, in other words: more paperwork and probably more > > scrutiny if there's really a tax savings. > > > > I don't think there is much tax benefit to forming an LLC unless you > > figure out all the "corporate lunch" loopholes that probably don't > > apply to a small business anyway, good luck with that. As an > LLC you > > end up paying a higher "business rate" for everything, plus > there is a > > business tax you're going to pay to Texas every year, I forget the > > name of it now--ask your accountant :-) > > > > As far as liability protection, this is a myth, just look up the > > lawsuits yourself. If you're a small business, it's obvious to the > > court who is at fault: you! I believe you only get liability > > protection with a large business where it is not as clear who is > > liable, but even then, good luck! > > > > I'm not a lawyer but I did just finish a business law class and > spent > > a fair amount of time on the IRS website, Secretary of State > website, > > reading books, etc. So my advice: as long as your business is > small, > > stay a Sole Proprietor and stay out of trouble and pay the self- > > employment tax with a smile on your face. Texas State has a Small > > Business Development Center and their advice is probably better than > > mine, they have offices in Austin and RR - > http://www.business.txstate.edu/sbdc/ > > > > > > > > > -- > Keith Aric Hall > > http://www.keitharichall.com/ > twitter: keitharichall > > > --~--~---------~--~----~------------~-------~--~----~ Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin -~----------~----~----~----~------~----~------~--~---
