We are an LLC. However, I don't think we could be a sole-proprietor with two people, so we moved it to an LLC. This way our personal assets are protected and we take distributions when we need them for our salary.
I have heard that an S-Corp is much more difficult in terms of taxes. Martha Huizenga DC Access, LLC 202-546-5898 */Friendly, Local, Affordable, Internet!/**/ Connecting the Capitol Hill Community /* RickG wrote: > Ha! Another interesting topic! In the past, when doing business for > myself, I legally filed as a sole-proprietor. When I got into the WISP > business, for a multitude of reasons, I became an "S-Corp". After > filing my taxes, it seems to be much simpler and possibly more > advantageous to just be a sole-proprietor. But that goes against all > advise I receive. > Marlon, I'm actually surprised that you are a sole-proprietor. What > benefits have you found by remaining so? > -RickG > > On Mon, May 25, 2009 at 11:54 AM, Marlon K. Schafer > <[email protected]> wrote: > >> One more thing. I don't agree with your definitions per se'. >> >> We all have businesses. A proprietorship is a TYPE of business. We are a >> proprietorship because I'm not incorporated (incorporating is over rated and >> expensive to do right). I'm still a business though.... >> >> http://en.wikipedia.org/wiki/Business >> >> http://en.wikipedia.org/wiki/Sole_proprietorship >> >> http://en.wikipedia.org/wiki/Asset >> >> marlon >> >> ----- Original Message ----- >> From: "Charles Wu" <[email protected]> >> To: "WISPA General List" <[email protected]> >> Sent: Sunday, May 24, 2009 10:03 PM >> Subject: Re: [WISPA] Quesiton on Funding / Financing / Capital Availability >> >> >> >>> Hi Marlon, >>> >>> I think it's appropriate to make a few definitions and distinctions on >>> things so everyone is on the same page >>> >>> Specifically, for purposes of making my point, I define >>> >>> Proprietorship: A commercial activity engaged in as a means of livelihood >>> or profit >>> >>> Business: A unique system of processes and procedures that documents and >>> codifies a specific method of proprietorship >>> >>> Asset: cash, inventory, equipment, infrastructure, customer contracts, >>> brand, marketing, etc >>> >>> >>>> Grin. Sure it is. That's what a LOT of small business people do. It's >>>> also kind of common for doctors, dentists, plumbers etc.... Sometimes it >>>> sucks, >>>> >>> Now, everything you stated above is just a method of proprietorship, and >>> in most cases, from a sale perspective, a proprietorships isn't worth >>> anything more than the depreciated value of its assets >>> >>> Say you were buying out the local plumber's office -- what would he have >>> of value? His truck? Some old tools? A customer list / brand perhaps >>> (but the reality of things is that customers do business with him because >>> of him, and if you bought him out and he moved out of town, those >>> customers would probably go back to being on the open market) >>> >>> Now, in comparing the WISP 'proprietorship' vs. the plumber, it's worth >>> noting that the WISP is somewhat unique in that it results in the creation >>> of an independent asset that holds onto a lot of value (e.g., the >>> recurring revenue and everything that goes to support it); in many ways, >>> this is akin to real-estate >>> >>> >>>> Not >>>> everyone out there even wants to get that big (if I had a nickle for every >>>> business owner that's told me the most fun they had and the most money >>>> they >>>> made was when it was just them, no employees......) But then again, >>>> that's >>>> one of the really cool things about this buisness, it's big enough and >>>> flexible enough to allow many different business models and operator >>>> dreams >>>> to bear fuit! >>>> >>> True...and you have the added benefit of building an asset that has value >>> (be happy we're not plumbers =) >>> >>> -Charles >>> >>> >>> >>> >>> >>> -------------------------------------------------------------------------------- >>> WISPA Wants You! Join today! >>> http://signup.wispa.org/ >>> -------------------------------------------------------------------------------- >>> >>> WISPA Wireless List: [email protected] >>> >>> Subscribe/Unsubscribe: >>> http://lists.wispa.org/mailman/listinfo/wireless >>> >>> Archives: http://lists.wispa.org/pipermail/wireless/ >>> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! Join today! >> http://signup.wispa.org/ >> -------------------------------------------------------------------------------- >> >> WISPA Wireless List: [email protected] >> >> Subscribe/Unsubscribe: >> http://lists.wispa.org/mailman/listinfo/wireless >> >> Archives: http://lists.wispa.org/pipermail/wireless/ >> >> > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: [email protected] > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > > -------------------------------------------------------------------------------- WISPA Wants You! 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