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LLC vs Corporation

Discussion in 'Business & Tax Advice' started by riekal, Nov 9, 2009.

  1. riekal

    riekal Junior Member

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    I am very close to setting up a Corp or LLC, just need to know which one to choose. Basically I want things to work like this. I'll have Big Company A. I want people working under that company, maybe with individual Tax ID's and all. I guess I just get confused on what the big difference between the two.

    I plan on launching a small ewhoring campaign very soon, and I want like 10 people doing the whoring, but I don't know if each person needs to be working for a separate company or what. Bah! So MUCH TO TAKE IN!

    Any help/guidance would be awesome BHW
     
  2. breakfree

    breakfree Registered Member

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    Costs are a big difference, for a start, are you aware of that?
     
  3. ViperVin

    ViperVin Regular Member

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    May want to post this in the Business & Tax Advice sub-forum. Search there too because I know this question has been discussed before. But as breakfree mentioned, there are big differences between the two.
     
  4. ifwearner

    ifwearner Regular Member

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    Dude look into a series-llc, i just found out about them recently and they are the bomb

    MasterCorp LLC is your main deal with its own EIN/name/whatever

    You can pull out a piece of paper and create another llc under that main LLC which acts as a completely different LLC for asset protection purposes, as well as being able to get another EIN and DBA for each of your 'series llcs' So it makes it easier each time you wanna setup a new llc, but their technical name is MasterCorp LLC-Series 1, etc but you just do a DBA and fix that right up.

    Consult your local CPA and tax attorney as I'm not qualified to give tax/corporation advice and everyone's needs are different.
     
  5. sparky123

    sparky123 Registered Member

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    I agree with ifwearner that you should consider an LLC instead of a Corporation, that is if you live in the U.S.A that is. I'm not sure if ifwearner's suggestion might fit your need since it is an umbrella corp structure and it's more costly to setup and maintain. A Corp is meant to be IPO friendly, whereas an LLC uses units and meant to be a private company. LLC also has better asset protection features than a Corp, although both will need to go through a conversion process to become IPO. You'll need to consult an attorney to set one up that fits your need because filing one to your State is very easy doing it yourself, it is writing the bylaws (your main protection) that requires the attorney's specialization. Expect to pay around $600-$1000 for a decent one.
     
  6. Crazy

    Crazy Jr. Executive VIP

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    LLC if you're a sole proprietory; mostly created to protect assets, etc (liability protection). Corporation implies you'll have an IPO and share holders.

    Consider looking at Legal Zoom. Professional and pretty reasonably priced compared to sitting down with a lawyer out of the phone book. I created my LLC there.

    Edit: I should note you will get your own EIN, and Legal Zoom provides you with employee certificates, a binder to keep hours, etc. LLC is how you want to go.
     
    Last edited: Nov 10, 2009
  7. riekal

    riekal Junior Member

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    Thanks to everyone that replied to this thread. Sorry for posting in the wrong section as well. I think I'll check out an LLC with LegalZoom soon. I'll let you guys know of my findings as soon as I get it running.
     
  8. mr.breakit

    mr.breakit Jr. VIP Jr. VIP Premium Member

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    legalzoom is a rip off that is like paying someone 10 dollars to tie your shoes for you. to start an LLC is incredibility easy. go to your states website. california is something like ss.ca.gov and there is a business section and to start an LLC you literally need to fill out 3 forms and pay 75 dollars are you are good, or you can pay legal zoom 300.
     
    • Thanks Thanks x 2
  9. DKennedyCPA

    DKennedyCPA Newbie

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    An LLC can elect how it wants to be taxed. So an LLC-C is the same for tax purposes as a C Corp. An LLC-S is the same for tax purposes as an S Corp.

    The C Corp protects you against risk from the business, but doesn't protect the business from personal judgements.

    In most cases, the LLC (whether default taxation or LLC-C or LLC-S) is going to protect both ways.

    If you're in a state that recognizes the Series LLC, then I would agree take a look at those. The subsidiary members can each be separate entities, different tax treatment, different year ends, even different owners - way easier to set up and faster.
     
  10. nimbus49

    nimbus49 Elite Member

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    Start by 1099ing everyone for starters, then see how it goes.
    No need to blow a bunch of dough right away!