File for LLC or Corp

[ndemge]

Myself and Brother are in business together, getting ready to file paperwork..<br /><br />We make Mortar Racks for Fireworks, so there is the potential for Liability lawsuits. Gotta love the idiots.<br /><br />What would be the reason to do a LLC instead of S Corp ?<br /><br />We are learning a lot as we read the secretary of state website etc... Any input is apreciated

 

[SlowlySinking]

Re: File for LLC or Corp

Hi, here's an on line website for free legal information, <br /><br /> http://www.nolo.com/ <br /><br />Good luck,,,

 

[ndemge]

Re: File for LLC or Corp

SlowlySinking... that is a great site! Lots of well written info (and it's not full of advertisements)<br /><br />.....Never knew I was goign to be an accountant when I grew up... start a business and you have to be one.

 

[18rabbit]

Re: File for LLC or Corp

Nolo is a bunch of Berkeley attorneys that admitted you don’t need an attorney for a lot of what goes on in courts. You can do it yourself, and they publish a lot of books on how to do it. They also tell you when not to do it by advising you when to consider an attorney because you’re getting in too deep/complex or the risk is to great should you error. It’s good stuff!<br /><br />That said, you can look at it as if all corporations are government entities. With a corporation, you pay an annual fee for the privilege of placing your fiscal interest in a higher tax bracket, but often at a reduced risk. An alternative is an Irrevocable Business Retirement Trust. It may or may not appeal to you.<br /><br />A corporation is an entity that is exposed, but offers limited shielding for you. A IBRT is not exposed and completely shields your assets (except from criminal tax evasion & back child support), but not you. But you don’t care because you don't own anything to lose, the trust does and it can't be sued like a corporation can.

 

[18rabbit]

Re: File for LLC or Corp

One more thing…corporations have “officers” and trusts have “executors”. Executors and their information are available on a need-to-know basis and controlled by the executor. Officers and their information are public record and controlled by the state. (Did I not mention that all corporations are government entities? ) If you decide to incorporate by yourself you will want to keep this in mind when you complete the application.<br /><br />Some small businesses that incorporate do so in Nevada due to their lenient corporate tax structure and state laws that keep the corporate officer’s information confidential. On the other hand, regardless of where a business is incorporated, some states require filing (and thus, public record) of the information if you do business in their state.<br /><br />Large businesses sometimes incorporate in Massachusetts due to the state laws that protect the officers from just about anything, including some criminal activity that would not be shielded elsewhere.

 

[clanton]

Re: File for LLC or Corp

The S corp may not protect you in Florida. Judge is having them produce all records we want.

 

[ndemge]

Re: File for LLC or Corp

From what I've been reading, LLC and Scorp just seperate the liability, except for gross neglegence and tax evasion. LLC ans Scorp, you still file on your personal tax return. This gets tricky.<br /><br />Full INC gets taxed on profit after expenses and payroll/bonuses. <br /><br />Need to sit down with the tax lady.