But if you have an LLC don't you have to pay self-employment tax? That's my understanding, but I could be wrong. I have an S-corp and I thought the reason why most CPAs recommend them is for that reason. A friend of mine, much more seasoned in business, has an LLC and he was complaining about the self-employment tax he was paying (about 13%, same as payroll taxes).
I have an S-corp. I take a small W-2 salary from it and the rest is categorized as dividends, subject to standard income tax but no payroll tax and without all of the SDI and all those other withholdings you pay on a W-2. On Thu, Jun 18, 2009 at 2:32 PM, Jarin Udom<[email protected]> wrote: > > I would definitely recommend going with an LLC, as it has the most > flexible taxes (you have the option to use pass-through taxation or > not). > > I'm not a lawyer, but what I *hear* is that as a software developer > California has much more protective (i.e. better) laws when it comes > to things like intellectual property and non-competition lawsuits. If > you're planning to do anything even remotely similar to what you did > at your previous employer or you may hire any of your past co-workers, > it may come in handy. From what I understand, if you incorporate in > Nevada, Delaware, or some other state, the complaining party can > choose to file the lawsuit in one of those states and put you at a > serious disadvantage. > > Of course, I'd consult a lawyer first before making a final decision > in that regard. > > Jarin > > > On Jun 17, 1:07 pm, Erik Pukinskis <[email protected]> wrote: >> Hey friends, >> >> I am starting a little web business, and since I've started >> interacting with customers it's time for me to legally get off the >> ground. Unfortunately, I don't have any expertise with this, beyond >> what I've learned from teh internets, and I could use some help. >> >> First, can anyone recommend a good, affordable, web-savvy San Diego >> small business lawyer? And an accountant? >> >> Otherwise, does anyone know anything about these things.... >> >> 1) Should I file for my permits in CA or in somewhere with nicer tax >> laws, like Delaware? If I and my employees are working from San >> Diego, does that just mean I have to register as a business here? >> With city, county, etc? >> >> 2) What international trademark classes do people use for the >> trademarks for web business? My site is providing instructional >> materials, but I'm also mailing people products and printed guides. >> I'll be building an iPhone app too. Should I just drop $1200 and >> cover all my bases, or can I get by with a trademark under one $300 >> class? >> >> 3) What do people recommend for business insurance? And where do you get it? >> >> 4) I'm leaning towards a Sole Proprietorship, since I want to maintain >> full control and I think the liability will be minimal. Has anyone >> done this? Are there any pitfalls? Should I look more closely at an >> LLC? >> >> It seems like I'm definitely going to need a lawyer soon enough, but >> maybe I can get by for a while without it. I'm supporting the >> business out of pocket and am trying to keep expenses to a minimum. >> >> Love, >> Erik > > > --~--~---------~--~----~------------~-------~--~----~ SD Ruby mailing list [email protected] http://groups.google.com/group/sdruby -~----------~----~----~----~------~----~------~--~---
