Sole Proprietorship or LLC

I am curious to know how many of you have chosen a LLC over a sole proprietorship and or if you decided to choose sole proprietorship over a LLC, and why? Aside from annual fees, I see the main difference as, if someone wanted to sue me they cannot go after my personal assests(like my home).


I'm currently only making money through one website(ad space, affiliate programs/commissions, but have many other websites and projects getting started to add to the income. Plus once I could get an established portfolio, with proven results I wouldn't mind doing SEO services for local clients.
Would I be covered to just open an LLC called "_______" Web Solutions.

I know I'm probably better off just talking to a CPA or lawyer but just wondered how many of you are a sole proprietorship. Are you free to claim/write off services that you get from BHW.

Why not just open an S-Corp and your profits go through your personal income tax so you don't get double taxed like all the other LLC, Partnership and C-Corp do?

JQ

Will have to look into S-corps I guess.

jonnyquest said:

Why not just open an S-Corp and your profits go through your personal income tax so you don't get double taxed like all the other LLC, Partnership and C-Corp do?

JQ

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What do you mean by 'go through your personal income tax'?

LLC
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Your business makes money and you pay yourself a salary (which is tax deductible)

You report the salary as your personal income.(which gets taxed)

No double taxation.

I find an LLC with S-Corp status to be the best of both worlds.

jonnyquest said:

Why not just open an S-Corp and your profits go through your personal income tax so you don't get double taxed like all the other LLC, Partnership and C-Corp do?

JQ

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READ people!

You only get a double tax if you distribute dividends. If your salary takes all the money then you only get taxed once since it is deductible by the business. There are many things that you can do as a C-corp that you can not do as one of the others. Pay health insurance premiums for employees... 100% deductible on a c-corp. Car allowance and many others.

@Johnny you need to read some more because each one of those mentioned except the c-corp do not get double taxed if set up right.

jonnyquest said:

Why not just open an S-Corp and your profits go through your personal income tax so you don't get double taxed like all the other LLC, Partnership and C-Corp do?

JQ

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LLC is not double taxed and a lot less of a headache to set up. Only C-Corps are double taxed.