When starting a business that you don't expect will make much money, are you better off forming an LLC or an S corp?

When starting a business that you don't expect will make much money, are you better off forming an LLC or an S corp?
by

1 Answer

Answer :

answer:I am not an expert, an attorney, or an accountant. This is just my observation from my little corner of the world under Illinois law. Your state laws maybe different. But I know a lot of people who have small businesses, developing and owning real estate. And they all use LLCs. I have helped a few people with the paperwork to set up an LLC. You create the LLC by filling out short forms and paying a fee, open a checking account for the LLC, and run all the business through that account. Afterwards, the LLC pays an annual fee and files an annual report (a VERY simple form downloadable from the Secretary of State). The LLC does not have to file income taxes as a separate entity. If you are the sole member of the LLC, you report its income & expenses on your personal tax return. Again, just my small experience with a few acquaintances. But it gives you an idea of what is possible.
by

Related questions

LLC or S Corp: Which should I do, and where should I do it?

Description : LLC or S Corp: Which should I do, and where should I do it?

Last Answer : Here is an article that discusses how to choose the right structure for your business.

Do I need a DBA or LLC?

Description : Do I need a DBA or LLC?

Last Answer : Get a hold of local SCORE office, they are retired business leaders, that help new and growing small businesses. Also get a lawyer.

Should I file my LLC with Legal Zoom instead of dealing with my state directly?

Description : Should I file my LLC with Legal Zoom instead of dealing with my state directly?

Last Answer : LLC stands for Limited Liability Company, right?

Where should I form my LLC? NY, CA, or Delaware?

Description : Where should I form my LLC? NY, CA, or Delaware?

Last Answer : I’ve heard Nevada is a very good place to form an LLC. They have a very good tax structure. You don’t need to be there physically either.

When you purchase a business as a going concern, what documents and things would you expect to have turned over?

Description : When you purchase a business as a going concern, what documents and things would you expect to have turned over?

Last Answer : It’s my understanding that, when a business is purchased, absolutely everything to be transferred is spelled out in the sale contract in detail.

Why is starting a business and being your own boss so much a part of the American dream?

Description : Why is starting a business and being your own boss so much a part of the American dream?

Last Answer : Because you are lead to believe that you will no longer be a slave to a half brain nitwit ,and you will be the one calling the shots making the deals, and so on. Sadly you become more of a slave than you ever were working for ole half brain.

As per section 2(e) of the Indian Contract Act, “Every Promise and every set of promise forming the consideration for each other is a/an (a) Contract (b) Agreement (c) Offer (d) Acceptance

Description : As per section 2(e) of the Indian Contract Act, “Every Promise and every set of promise forming the consideration for each other is a/an (a) Contract (b) Agreement (c) Offer (d) Acceptance

Last Answer : (b) Agreement

A/an …………… is every Promise and every set of promises , forming consideration for each other (a) Offer (b) Agreement (c) Acceptance (d) Transaction

Description : A/an …………… is every Promise and every set of promises , forming consideration for each other (a) Offer (b) Agreement (c) Acceptance (d) Transaction

Last Answer : (b) Agreement

Which of the following legal statement is incorrect? (a) An agreement enforceable by law is a contract [Section 2] (b) All agreements are contracts [Section 10] (c) A proposal when accepted becomes a promise [Section 2] (d) Every promise and every set of promise forming the consideration for each other is an agreement [Section 2(e)]

Description : Which of the following legal statement is incorrect? (a) An agreement enforceable by law is a contract [Section 2] (b) All agreements are contracts [Section 10] (c) A proposal when accepted becomes ... and every set of promise forming the consideration for each other is an agreement [Section 2(e)]

Last Answer : (b) All agreements are contracts [Section 10]

Every promise and every set of promise forming the consideration for each other is a/an (a) contract. (b) agreement. (c) offer. (d) acceptance.

Description : Every promise and every set of promise forming the consideration for each other is a/an (a) contract. (b) agreement. (c) offer. (d) acceptance.

Last Answer : (b) agreement.

Is the government blocking you from starting a business?

Description : Is the government blocking you from starting a business?

Last Answer : In Florida you actually can sell cakes without a license made in your home. You have to mark the packaging with Made in a cottage food operation that is not subject to Florida's food safety ... out. When I had questions the local government was always very helpful, which I was grateful for.

What are the rules in starting an online consulting business in Alberta?

Description : What are the rules in starting an online consulting business in Alberta?

Last Answer : First of all, you need to find out if the consulting you will do is in an area that requires education or licensing. For instance, if you were going to offer real estate guidance, some ... needed in Red Deer, which would certainly be different from what is needed where I live in California.

How would I get help starting a business from scratch?

Description : How would I get help starting a business from scratch?

Last Answer : It will be hard to partner with a major company if you don't have an established business. Hiring a consultant would be a huge waste of money. You're better off building a small-scale business ... be better off bringing in a partner and giving him some equity instead of using a consulting service.

Business Gurus: I need some advice for starting up a coffee shop?

Description : Business Gurus: I need some advice for starting up a coffee shop?

Last Answer : A guy I knew from work retired, and he put his entire retirement buyout savings into opening a sandwich/ coffee shop. He lost it all inside 6 months. It didn’t help that he rented a building right next to the BIGGEST STARBUCKS IN THE EAST BAY.

If starting a business could be streamlined through interactive software, would you use it?

Description : If starting a business could be streamlined through interactive software, would you use it?

Last Answer : answer:What would this software do? Create a business plan? Help me do a budget? Check my budget? Help me get financing? Develop a product? What? What would the software streamline? Would it turn every ... is flexible enough to handle my business. Mine is unique, you know. And so is everyone else's.

Any tips that you'd give someone who is starting their own business?

Description : Any tips that you'd give someone who is starting their own business?

Last Answer : answer:Get a business license. Consider the tax implications of the different types of business structure: LLC, S Corp, sole proprietorship. Get a good accountant or bookkeeper to set up your accounts.

How do I use PayPal for starting an online business?

Description : How do I use PayPal for starting an online business?

Last Answer : Allll you really need to do is exchange email information. You can send their email an invoice from paypal and they can pay you from the link.

I'm starting a business and need a name, can you help?

Description : I'm starting a business and need a name, can you help?

Last Answer : answer:Have you found this organization yet? How does a take off on Best Buy’s Geek Squad sound – Neat Squad

I'm thinking about starting a cleaning business, do any of you own one and have hints?

Description : I'm thinking about starting a cleaning business, do any of you own one and have hints?

Last Answer : What country are you in? If you’re in the States…. Insurance.

Looking for good blogs or guides for starting a small business.

Description : Looking for good blogs or guides for starting a small business.

Last Answer : http://www.score.org/index.html

What has been the biggest challenge you have faced starting an online business?

Description : What has been the biggest challenge you have faced starting an online business?

Last Answer : There are lots of huge challenges. For me, the biggest challenge is prioritizing. I always seem to have 200+ important projects, but I can only do 1 or 2 at a time, and picking the rights ones is key ... . It's a careful balance, of work, focus, and strategy. And you must avoid burnout. Good luck.

Question about starting my own custom t-shirt business?

Description : Question about starting my own custom t-shirt business?

Last Answer : All I know is that there are many services that do this for you with no risk on your and, such as cafepress or Zazzle, but they tend to be more expensive for the customer.

What do I need to know about starting and running a (very) small business?

Description : What do I need to know about starting and running a (very) small business?

Last Answer : I do know a number of people who do this type of work. You would need to set your business up as a LLC- limited liability corporation. Develop a business plan and guidelines, ... with your local small business administration and see what sort of classes they offer with regards to licensing.

How can one get the right financing that he needs for starting a business?

Description : How can one get the right financing that he needs for starting a business?

Last Answer : answer:If you don't have the capital you need to fund your business, try family and friends to lend you the capital you need to get started. Make sure that you have a realistic plan and ... Angel Investors or teaming up with a business parter/silent partner to fund your endeavor. Good Luck! R

Where can I get information and costs about starting an online business?

Description : Where can I get information and costs about starting an online business?

Last Answer : answer:Find a business partner you trust who knows these things. Then hire a good accountant and a good lawyer for the business. If you don't know these things yourself, you have no ... a competent technical person in the partnership probably could have gotten them profitable for about $2 million.)

Top 40 Small Business Ideas in India for Starting Your Own Business

Description : Top 40 Small Business Ideas in India for Starting Your Own Business

Last Answer : nowadays the younger generation is always running to find something new and especially wanting to become entrepreneurs they have the power and energy which is the key for them opening the hidden ... excellent idea and forty event management manpower is the main requirement here if you have that

is North American Holding Corp still in business?

Description : is North American Holding Corp still in business?

Last Answer : Need Answer

New Yorkers, how do you feel about the Kushner Corp.'s idea for a large erection on Fifth Avenue?

Description : New Yorkers, how do you feel about the Kushner Corp.'s idea for a large erection on Fifth Avenue?

Last Answer : Appropriate address for the family of The Anti-Christ.

Storage Water Heater Archives - A.S Corp?

Description : Storage Water Heater Archives - A.S Corp?

Last Answer : Our water heaters are available in plastic bodies and Porcelain enamel tanks. They are equipped with all safety features in order to fulfill domestic parameters. So if you are looking for best quality water heaters, then browse through our collection and find your best deals.+91 9167672200

taxes for LLC FORM 1065 requires a balance sheet. With rental real estate (some properties fully depreciated)as primary business, should the balance sheet carry the properties as book value or current market Are there limitations created by carrying low?

Description : taxes for LLC FORM 1065 requires a balance sheet. With rental real estate (some properties fully depreciated)as primary business, should the balance sheet carry the properties as book value or current market Are there limitations created by carrying low?

Last Answer : A balance sheet carries property at book value. Accounting rules do not let you mark up / mark down property as prices change. The exception to this is for real estate professionals who buy/sell ... fully depreciatied. Rest of question was cut off -- limitations created by carrying low ?????

The Advantages Of Choosing An LLC For Business Operations?

Description : The Advantages Of Choosing An LLC For Business Operations?

Last Answer : When beginning a new business venture, there are many important choices to make. One of the most important that people face is what type of business to open. They may choose a sole proprietorship, a ... . The most advantageous aspect of an LLC is that the owners will have limited liability, as the

How much money can I expect to make off my small business in flower delivery?

Description : How much money can I expect to make off my small business in flower delivery?

Last Answer : It will depend on the supply and demand already in your area. Other considerations are things like the cost of flowers to you and gas. You should charge 10-30% of your cost on the flowers you sell and ... if you make $100 in sales and delivery fees a day net before taxes would be $10-$30 for you.

When one side pulls out of a contract (for example in the case of Paula Deen's business deals), don't they still have to pay the other side and fulfill the contract?

Description : When one side pulls out of a contract (for example in the case of Paula Deen's business deals), don't they still have to pay the other side and fulfill the contract?

Last Answer : I am no lawyer but wouldn't they have some kind of a morals clause in the contract? I am not sure that is the right term, but I am guessing that there is some kind of clause in ... her if she does anything that damages her reputation to the point that it would reflect negatively on their brand.

I'm starting a Podcast for women to go along with my brand, You're WORTH It and I'm stuck trying to figure out a title. I need suggestions!

Description : I'm starting a Podcast for women to go along with my brand, You're WORTH It and I'm stuck trying to figure out a title. I need suggestions!

Last Answer : There's no rule that says your podcast must have a unique title. There are plenty of podcasts that share their name with another podcast (e.g. Popcorn with Peter Travers and Popcorn with Mitchell Davis and Jack ... Because You're W.O.R.T.H. It seems like it could work just fine as a title.

Is starting a campaign on kickstarter a bad idea that could lead to unnecessary competitors?

Description : Is starting a campaign on kickstarter a bad idea that could lead to unnecessary competitors?

Last Answer : Get a lawyer in patent law. Short answer ==> patent before release (kickstarter).

Starting direct deposit with another company and I have two separate accounts how do I submit the forms?

Description : Starting direct deposit with another company and I have two separate accounts how do I submit the forms?

Last Answer : answer:I have the money all deposited into my primary account and have automatic transfers set up to move the money I want in my secondary accounts to my secondary accounts the same day it is deposited to the primary. Probably not the best way to do it, but it was the least confusing to me.

Starting to design and market T-Shirts?

Description : Starting to design and market T-Shirts?

Last Answer : answer:This shop on Etsy has the highest number of listings. That’s how I found it. They sell t-shirts and have over 9000 sales. I have no idea how they do that. Could you do both Threadless and Zazzle at first and see which one works better for you?

Is it better to study business (bachelors) in Slovenia or Estonia?

Description : Is it better to study business (bachelors) in Slovenia or Estonia?

Last Answer : WELCOME TO FLUTHER!!! Not being familiar with the education system in either place, I really don’t have a preference!!! Yet, it sounds to me like you’ve already made up your mind. Strictly going by YOUR description, I’d say Estonia is the better offering & believe that is where you prefer to go!!!

How does the Better Business Bureau work?

Description : How does the Better Business Bureau work?

Last Answer : When I was having issues with Lucille Roberts (insert cursing here), someone told me to report them to BBB and I went on their website and was going to submit a claim, so to speak but never ... to think about it. I believe that people complain to them about businesses and they check out the claims.

How does writing stuff off for a business work?

Description : How does writing stuff off for a business work?

Last Answer : In the U.S. ( I think ) you write off the value of computers over a four year period on time. 1/6 the first year and ⅓ for years Two and Three the last 1/6 is in the four year. Records for all pieces and components are required.

Should businessmen who buy a business and then sell parts off and close the business be charged with murder?

Description : Should businessmen who buy a business and then sell parts off and close the business be charged with murder?

Last Answer : LOL! No silly, you can’t kill a parts¿¿¿

what are the checklist items a new business person needs to check off when setting up their bookkeeping?

Description : what are the checklist items a new business person needs to check off when setting up their bookkeeping?

Last Answer : I ran a family small business for nearly 30 years. My advise is to contact a CPA who does small business activities such as payroll, payroll taxes, inventory, reciepts, expenses, depreciation. It is ... omissions in this area. Good luck, your own small business can be the most rewarding of ventures.

What is the single word that can best describe today s business? A. Technology. B. Profit Making. C. Change. D. People.

Description : What is the single word that can best describe today s business? A. Technology. B. Profit Making. C. Change. D. People.

Last Answer : C. Change.

If you would be given an ample amount of money, what kind of business would you choose?

Description : If you would be given an ample amount of money, what kind of business would you choose?

Last Answer : I’d love to own a small movie house that shows nothing but films mainly from the ‘30s and ‘40s.

Why do some choose less money instead of their family business with good money?

Description : Why do some choose less money instead of their family business with good money?

Last Answer : Doe you like the business they are in? Would you like to get up and go to work there every day? That is more important than money.

how can I get money to start a business in Seattle?

Description : how can I get money to start a business in Seattle?

Last Answer : I’m in Seattle. Do you have Collateral?

Which of the following should not be done by poor countries to get a better share in world‘s wealth? a. By allowing rich countries to exploit their natural resources. b. Forming alliances and groups to promote their welfare. c. Address their needs to International forums like UN and its subsidiary bodies. d. Strengthen their internal democracies.

Description : Which of the following should not be done by poor countries to get a better share in world s wealth? a. By allowing rich countries to exploit their natural resources. b. Forming ... their needs to International forums like UN and its subsidiary bodies. d. Strengthen their internal democracies.

Last Answer : a. By allowing rich countries to exploit their natural resources.

Trump Corporation's chief financial guy, Allan Weisselberg, surrendered to authorities today as part of the Trump Corp criminal investigation. How many $$ do you think he embezzled over his 30+ years there?

Description : Trump Corporation's chief financial guy, Allan Weisselberg, surrendered to authorities today as part of the Trump Corp criminal investigation. How many $$ do you think he embezzled over his 30+ years there?

Last Answer : I don’t t think he embezzled at all. He didn’t need to. He got his cut of a criminal enterprise. Grifters like Trump make sure that the people they trust their money with are well compensated so that they don’t steal.

Myself Inc. - how does working in a corp. affect you?

Description : Myself Inc. - how does working in a corp. affect you?

Last Answer : Don’t ever forget that you’re not married to your job. At anytime you have the option of quitting if you start to feel it’s negatively affecting your mental health.