[Cialug] Starting an LLC

[Kenneth Younger]

Lately and generally, S corps are the best method for setting up small
companies. They have all the advantages of a C corp, without having
the double-taxation issue. Generally, the only restriction is on the
number of employees you can have - and the last time I remember
discussing this with my Accounting prof, that maximum was like 50 - 75
or so.

There are all sorts of fun schemes you can set up for paying yourself
from the company, things like dividends (which are taxed at a lower
rate - sometimes). If you are good friends with any accountants or
lawyers that deal with these types of things, they would be the best
to talk to.

The only downside it generally provides is around tax time - filing
taxes when you set up these crazy structures can become baffling,
usually requiring a tax accountant to help.

-Kenny

On Thu, Sep 11, 2008 at 6:04 AM, Dave Weis <djweis at internetsolver.com> wrote:
>
> On Wed, 10 Sep 2008, Colin Burnett wrote:
>>
>> I remember this coming up at a recent meeting but I don't remember who
>> it was.  What do you need to do to start an LLC?
>
> Depending on why you are forming it an S or C corporation may be a better
> idea. The biggest benefit is that the owner's health insurance was
> completely deductible as opposed to an LLC.
>
> Another benefit is that when you are getting a loan of any kind you can say
> you are an employee of a company and you will get a lot less questioning
> than if you tell them you own your own company. That's a bit of free advice
> that I learned the painful way :-)
>
> dave
>
>
>
> --
> Dave Weis
> djweis at internetsolver.com
> http://www.internetsolver.com/
>
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