LLC Questions

[rgordon83]

They probably thought you would save some $$$$ on Self employment taxes (currently at 15.3%) Take a small salary (subject to se tax) and the rest in a distribution which is not subject to SE Taxes. It depends on your situation but it can save you some cash to set it up this way. Plus with an s corp it is easier to transfer to a c corp election if you so choose to do so.
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Ya i plan i taking a VERY small salary and then paying myself the rest in dividends, and my wife is also an "employee" b/c we needed 2 employees for health insurance. But i still need to figure out how to work out the tax vs dividends thing. my current accountant is a retard so i'm looking for a new one right now...

 

[jbartinla]

You should talk to a lawyer for sure, but one thing we were told in the past. If you do not have real assets (cash, etc) in the company and a legit bank account that you run the business through, a judge can waive the LLC protection that you would have if something goes bad under the spirit that the LLC was just a shield and not a legit entity.

Again, talk to a good lawyer - it will cost more than Legal Zoom, but it will save your ass one day.

 

[Jsmith]

If you read my last post you would have seen that I thanked those for their advice and asked a final question.

It was along the lines of should I use a service (would it be simple and as effective), or should I go to someone locally?

Sorry, I replied before I read . Here is a link to an article that helped me get going in the right direction when I was setting up my stuff.

S Corporation vs. LLC: Which Structure is Right for Your Business

 

[profitaddiction]

Thanks Jsmith