So I've just always freelanced under my own name. Is there any financial benefit to a Sole Proprietorship or LLC over what I'm doing now?
Thanks, Brad On Wed, Jun 17, 2009 at 4:04 PM, Stephen Waits <[email protected]> wrote: > > Matt Aimonetti wrote: > > Your taxes will not depend on what state your LLC or S-Corp is in, since > > both are "pass-through" vehicles, and just hand the income to you to pay > > taxes on. Shopping among states for better tax treatment is for larger > > corporations. > > > > I don't believe that's exactly correct when it comes to an S-Corp. I > > don't deal with that part of our business, so don't quote me on that, > > but when I filed my personal tax, I only paid income tax on my income. > > (what I gave myself as a salary) The rest is dealt at the business > level. > > No, it's exactly correct, though you did admit you didn't actually know. > > S-Corps don't directly pay taxes (or receive refunds). The gains or > losses are passed through to shareholders individual taxes, reported via > a Schedule K. > > And to verify what someone said earlier.. basing your corporation > outside of CA won't save you any money, unless you intend on breaking > the law by not also registering with (and paying!) CA. > > With a corporation, you WILL pay CA $800/year, and San Diego (don't > remember, about $50/year). I couldn't tell you how this money is used. > > In case it hasn't been said enough, avoid employees. That's a huge mess! > > -- > Stephen Waits > [email protected] > > WAR IS PEACE | BIG BROTHER > FREEDOM IS SLAVERY | 1984 > IGNORANCE IS STRENGTH | George Orwell > > > > --~--~---------~--~----~------------~-------~--~----~ SD Ruby mailing list [email protected] http://groups.google.com/group/sdruby -~----------~----~----~----~------~----~------~--~---
