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Sole Proprietorship or LLC

Discussion in 'Business & Tax Advice' started by _clicking_, Feb 8, 2012.

  1. _clicking_

    _clicking_ Power Member

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    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.
     
  2. jonnyquest

    jonnyquest Regular Member

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    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
     
  3. _clicking_

    _clicking_ Power Member

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    Will have to look into S-corps I guess.
     
  4. fuzzy_corleone

    fuzzy_corleone Regular Member

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

    derajc Registered Member

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    Location:
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    LLC
    -----
    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.
     
  6. Tommybee

    Tommybee Junior Member

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

    TNphoneman Senior Member

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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.
     
  8. dotthei

    dotthei Regular Member

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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.