[Refresh Austin: 4372] Re: business model

[Holly Fortenberry]

Thanks Terry and all of you for trying to hash out this complex subject.  I am definitely planning to talk with a tax attorney.  I am still wondering though what you all have chosen personally for your own business.  I am after personal experience here more so than the theory from books that I can study for myself or get from an attorney. Keith are you operating an LLC?  Ferodynamics?  How about you?  A Sole Proprietorship? What about you Terry?  An LLC? Anybody else care to share the choice they made and if it has worked out well or if you would change your choice if you had it to do over again?  Thanks! Holly Terry Brown wrote: In terms of whether or not you should form as a S-Corp, C-Corp, or LLC, there are several considerations that would be most served by talking with an attorney.  The LLC has units instead of shares; however, they are basically the same thing at least in principle.  You have so many units that reflect the entire ownership of the company.  Each state's rules governing LLC's are different, so, again, you would be best served by investing in at least a discussion with a corporate attorney.  You only have to go public if you reach a certain level of owners within the organization, which most small businesses would never achieve.   The bottom line is that you should find an attorney who deals with small businesses and at the very least do a consultation to get their recommendations.            From: refresh-austin@googlegroups.com [mailto:refresh-austin@googlegroups.com] On Behalf Of Holly Fortenberry Sent: Saturday, August 22, 2009 4:40 PM To: refresh-austin@googlegroups.com Subject: [Refresh Austin: 4362] Re: business model   LOL, now I'm a bit more (or less) confused.  :-)  So Terry, I take it you think the corp. veil DOES protect even a one-man show?  Would you mind expanding on your disagreement?  Also, I'm assuming you are not referring to the shares statement.  I also would not want to go public.  That's a bit too big for me.  I want to keep the business small (between 3 and 20 employees ultimately).  For now it's just me and a some contractors. Thank you! Holly Terry Brown wrote: I respectfully disagree with everything you just said!  :)   Sent from my iPhone   On Aug 22, 2009, at 3:07 PM, ferodynamics <duch...@solve360.com> 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/           --~--~---------~--~----~------------~-------~--~----~ 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 Refresh-Austin@googlegroups.com 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 refresh-austin-unsubscr...@googlegroups.com [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin -~----------~----~----~----~------~----~------~--~---