Results 1 to 5 of 5
  1. Collapse Details
    SMLLC vs S Corp, and mid-year filing
    Small but successful restaurant here. Last year I paid myself salary and filed as SMLLC - thinking I probably paid more taxes than necessary. Although it is late in the year, I am researching converting to an S corp, and since I am already paying myself a reasonable salary, and be able take dividends of profits. I think this will be better for tax purposes among other reasons. Am I missing anything here?


    Share on facebook


    Reply With Quote
     

  2. Collapse Details
    You will find out that the worse tax for a small business is the social security tax for a sole proprietor. An S- corp will allow you to share profits with a K-1 and you will not have to pay social security tax on it


    Share on facebook


    Chris
    Please visit my website for all your Income Tax Santa Paula needs.
    Reply With Quote
     

  3. Collapse Details
    This is what Chris-Tax is mentioning: http://www.newcompanyinfo.com/save-t...-s-corporation


    Share on facebook


    Reply With Quote
     

  4. Collapse Details
    Quote Originally Posted by Chris_Tax View Post
    You will find out that the worse tax for a small business is the social security tax for a sole proprietor. An S- corp will allow you to share profits with a K-1 and you will not have to pay social security tax on it
    You can definitely have a lot more benefits with an S-corp.


    Share on facebook


    Offering professional logo design services at rock bottom prices. Leave a good impression with gorgeous business card and logo designs. Message me for quotes.
    Owner of Medical School Interview Advice blog.
    Reply With Quote
     

  5. Collapse Details
    Looking for some advice as i have researched online and watched many videos trying to understand the difference between an S Corp and LLC. So far my understanding is that if you have a single member LLC then you file your taxes on an individual return and you pay self employment on all the net income and the profits (if any). If you have a S Corp, then you pay the Self employment tax only on the salary you take and NOT on the profits/dividends. Is this right?
    If so then why do most people recommend opening an SM LLC and then later converting it to S Corp? Why not just start up with an S Corp, if eventually you will need to convert it into S Corp for tax benefits. Would really appreciate some advice here as i am terribly confused.
    I am thinking of opening a business in NYC as a single member. I expect the net yearly income to be not more than 40k. Should I open it as a LLC or as an S Corp?


    Share on facebook


    Reply With Quote
     

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •