Bradly, I believe that what you are doing is called Sole Proprietorship, you are just declaring your business income as personal income. Financially, I think it all depends on your gross income.
- Matt On Wed, Jun 17, 2009 at 4:19 PM, Bradly <[email protected]> wrote: > 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 -~----------~----~----~----~------~----~------~--~---
