Pros and cons of S Corp

roybean · 06-13-2006, 02:08 PM

http://sbinformation.about.com/od/ow...orporation.htm

Enigma · 09-18-2006, 03:21 AM

See http://taxguru.org/corps/corp.html too.

Hedwig · 09-18-2006, 03:47 AM

That's an interesting site, Enigma, although I don't totally agree with all of the assumptions. One thing I have always told my clients was to not make a business decision based solely on tax reasons, and it seems that a lot of the S vs. C on that site is based on tax implications. That is one aspect that should be considered, but only one.

Somewhere here I've written some information on the various types of corporations, or maybe just on the need to incorporate.

Once I get finished school I'm going to write some essays on this.

What I'm saying is to read taxguru and several other sources before making a decision. As taxguru said, it's not a decision to be taken lightly.

Qtip · 09-18-2006, 07:51 AM

Great REad! Thank You Both for the links!!!

Enigma · 09-18-2006, 07:54 AM

I totally agree.

I share office space with an Enrolled Agent (EA). He incorp. as an S-corp.

Me, I have two corporations. One, is my practice which is an PLC, same thing as an LLC except for professionals. and a C-corp.

Since I am a one man band, except for office staff and the IRS taxes my profession at the 35% bracket, I have the C-corp hold my lease, buys my computers, copiers and such, which I inturn lease back from the C-corp.

Depending on my net income for the year, I may "loan" the C-corp funds to invest thereby reducing the PLC exposure to taxes.

roybean · 09-18-2006, 01:07 PM

Thanks Enigma

Enigma · 09-18-2006, 02:34 PM

Business is my thing

Hedwig · 09-18-2006, 03:08 PM

I used to do a lot of work with small businesses as a part-time business. I had to give it up when life (like a job that had me traveling from east coast to west coast almost continually) got in the way.

Maybe we need to compare notes sometime.

roybean · 09-18-2006, 03:32 PM

Can I watch?

Enigma · 09-19-2006, 01:10 AM

Quote:

Originally Posted by Hedwig

I used to do a lot of work with small businesses as a part-time business. I had to give it up when life (like a job that had me traveling from east coast to west coast almost continually) got in the way.

Maybe we need to compare notes sometime.

I would like that.

Hedwig · 09-19-2006, 01:13 AM

Make it after next March and you're on.

I start my Master's project in a few weeks and I will have NO life until the degree is finished in mid-March (I hope)