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Author Topic: C corp or LLC  (Read 107 times)

Offline niobrara

  • Technician
  • Member Since: Sep 2009
  • Posts: 1228
C corp or LLC
« on: December 03, 2012, 12:19:11 PM »
When you started how did you set up and why ?

Offline Joebeef

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  • Member Since: Oct 2011
  • Posts: 95
  • Country: us
Re: C corp or LLC
« Reply #1 on: December 03, 2012, 02:55:47 PM »
In upsate NY started as a DBA.....it was the least expensive.

Offline AJ

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  • Member Since: Jun 2007
  • Posts: 9873
  • Country: us
    • ApplianceJunk.com - Appliance Repair
Re: C corp or LLC
« Reply #2 on: December 03, 2012, 03:32:54 PM »
I did LLC myself and had to show the bank my state LLC papers before they would let me open up a DBA business checking account.

Offline dab147315

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  • Member Since: Oct 2010
  • Posts: 2127
  • Country: us
Re: C corp or LLC
« Reply #3 on: December 03, 2012, 03:43:47 PM »
I did A LLC 3 years ago because my accountant said they could only sue your business and not your personal stuff.

Offline andersenappliance

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  • Member Since: Feb 2012
  • Posts: 776
  • Country: us
Re: C corp or LLC
« Reply #4 on: December 03, 2012, 11:30:19 PM »
I'm looking into a corporation, with me as an employee.  Not sure how it works yet, but it seems that my corporation can do more things, with more tax advantages, than I can.  If I work as an employee, I might be able to pay myself a subsistence (low tax) wage, and cover more stuff through the corporation, hopefully expenseing it before paying the 35% corporate income tax.

For example, if the corporation purchases real estate, it won't pay tax on that expense.  If I live in it, it can be in exchange for custodial/security duty.  I get $15-20 per hour, but the corporation pays for the auto-mobile, gas, travel (appliance repair conventions or other) etc.

If I pay for real estate, it is with after tax dollars, even with the interest deduction.  The corp. only pays tax on "profits."  People, including LLC's to an extent, pay tax on "earnings."

That being said, I haven't hashed all of this out yet to see if it is doable.  There might be many holes in this idea.

Offline wildimaginations

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  • Member Since: Jul 2011
  • Posts: 657
  • Country: us
Re: C corp or LLC
« Reply #5 on: December 05, 2012, 07:39:32 AM »
My CPA told me to get out of corporation and run a partnership.  Less paperwork and less costs.  Just take out a million dollar liability insurance to cover yourself and you should be good to go.
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