Author Topic: Forming an LLC  (Read 7785 times)

Offline hocker

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Re: Forming an LLC
« Reply #40 on: July 25, 2017, 01:33:46 PM »
Keep in mind a single member LLC is subject to 15% SS tax on all profits.

There's two ways to avoid that, either by making your wife a 49% non operator partner or by creating an S-corp and taking a low salary...

Offline Bh101

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Re: Forming an LLC
« Reply #41 on: July 25, 2017, 01:34:58 PM »
Keep in mind a single member LLC is subject to 15% SS tax on all profits.

There's two ways to avoid that, either by making your wife a 49% non operator partner or by creating an S-corp and taking a low salary...
has anyone heard of lakewood?

Offline Malachi

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Re: Forming an LLC
« Reply #42 on: July 25, 2017, 08:18:28 PM »
Keep in mind a single member LLC is subject to 15% SS tax on all profits.

There's two ways to avoid that, either by making your wife a 49% non operator partner or by creating an S-corp and taking a low salary...
is there any truth to that you can't take medical insurance through your business If the wife is non operating partner ? That's what my insurance broker told me
Denny Crane

Offline churnbabychurn

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Re: Forming an LLC
« Reply #43 on: July 25, 2017, 08:37:50 PM »
whats about forming a LLC out of the state that you work in for example montana (alot cheaper to operate)? would that be ok if your working in NYC ?


if you have a business that has a lot of expenses and you are only generating a small income ?
You have to register in the operating state as a foreign entity. So now you have double filing fees and double records.

Unless you don't have a physical presence or operation in NY.  - Then register LLC in Nevada for max annonimity.

Offline churnbabychurn

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Re: Forming an LLC
« Reply #44 on: July 25, 2017, 08:39:03 PM »
Probably wouldn't make any sense.

You might still have to file and pay in the state where the business is operating, and you'd probably have an expense of paying an agent in that state. Forming an entity in a different jurisdiction is usually done for reasons OTHER than tax (asset protection, business friendly jurisdiction, etc. etc.).
+1

Offline churnbabychurn

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Re: Forming an LLC
« Reply #45 on: July 25, 2017, 08:41:30 PM »


Keep in mind a single member LLC is subject to 15% SS tax on all profits.

There's two ways to avoid that, either by making your wife a 49% non operator partner or by creating an S-corp and taking a low salary...

The partner one is pretty weak....
Go with the s and take a reasonable salary.

Offline churnbabychurn

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Re: Forming an LLC
« Reply #46 on: July 25, 2017, 08:48:48 PM »
Does a single-person LLC allow you to "leave money in the LLC" and only pay taxes when it's withdrawn?
Technically Yes, if you elect to taxed as a c Corp. But, this means you're taxed twice. Once on the income left in the c, and then again once you take it out as a dividend distribution.

Overall you can benefit from lower tax rates. But this whole thing should only be done the proper way under proper guidance.
Only makes sense in limited situations

Offline Fish Tank

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Re: Forming an LLC
« Reply #47 on: July 25, 2017, 09:49:43 PM »
Technically Yes, if you elect to taxed as a c Corp. But, this means you're taxed twice. Once on the income left in the c, and then again once you take it out as a dividend distribution.

Overall you can benefit from lower tax rates. But this whole thing should only be done the proper way under proper guidance.
Only makes sense in limited situations
He asked about an LLC. c-corp would mean the business is registered as a corporation FWIU.

Offline churnbabychurn

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Re: Forming an LLC
« Reply #48 on: July 25, 2017, 10:19:26 PM »
He asked about an LLC. c-corp would mean the business is registered as a corporation FWIU.
No, a LLC can elect to be taxed as a c Corp. Without the formalities of forming a c corp

Offline hocker

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Re: Forming an LLC
« Reply #49 on: July 26, 2017, 05:51:41 AM »
No, a LLC can elect to be taxed as a c Corp. Without the formalities of forming a c corp
+1. @Fish Tank stick to the credit repair business ;-)

The partner one is pretty weak....

Offline aygart

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Re: Forming an LLC
« Reply #50 on: July 26, 2017, 08:58:13 AM »

The partner one is pretty weak....
Go with the s and take a reasonable salary.

It works for the income level where it is not yet worth it to make an S-Corp.
Feelings don't care about your facts