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Which one? Corp-S Corp-C or SP

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  • Which one? Corp-S Corp-C or SP

    Ok Ill try to keep this short. I currently have a full time job, but have always done construction on the side. I would like start up my own business.

    Here is my plan, keep my full time job and start wtih side jobs until things get rolling enough that I can't afford to keep my full time job. In the meantime I want to pick up my liability insurance, and establish a "tax shelter" for myself.

    What do you people suggest? I have been reading about becoming a Corp-S for the tax help. Everywhere I have read says to contact a lawyer or accountant, I figure there are enough of you out here that can guide me in the right direction. And I plan on doing all the filing myself (wife actually who used to be a paralegal)

    Comments, suggestions?

  • #2
    Re: Which one? Corp-S Corp-C or SP

    You've already received the best advice, contact a lawyer AND an accountant. Everyone's circumstances are a little different from the next persons. What's right for me could be absolutely wrong for you.
    Last edited by BadgerDave; 07-09-2008, 02:28 PM.
    Teach your kids about taxes..........eat 30 percent of their ice cream.

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    • #3
      Re: Which one? Corp-S Corp-C or SP

      Originally posted by BadgerDave View Post
      You've already received the best advice, contact a lawyer AND an accountant. Everyone's circumstances are a little different from the next persons. What's right for me could be absolutely wrong for you.
      no truer words...

      steve
      In the never ending struggle to keep the water flowing.... The Poo Poo Cowboy rides again!!!

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      • #4
        Re: Which one? Corp-S Corp-C or SP

        Come on! Everyone knows the proper thing to do is talk to the lawyer or accountant. Noone can get their a** in a sling for going out on a limb here.

        It's the classice "if someone told you to jump off a bridge".

        Opinions here please, someone starting out insured doing small jobs.

        MP

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        • #5
          Re: Which one? Corp-S Corp-C or SP

          sub S or LLC. the tax benefits are there as well as the requisite corporate veil to provide the necessary liability protection. remember that whichever form you choose, it is important to, as completely as possible, keep your personnal life and business life totally separate.a C corp would be a little more costly to set up and the benefits wouldn't accrue to a business until it had some substantial size. just my $.02.
          there's a solution to every problem.....you just have to be willing to find it.

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          • #6
            Re: Which one? Corp-S Corp-C or SP

            Every time I turn around, I see large, well-financed companies with LLC after their name. Limited Liability Company seems to be the way a lot of people are going. I, personally, think LLC is the right thing for my little business. That may or may not be true for you. I'm in the process of finding an accountant right now. With LLC, I think I'm ok without a lawyer to file for me as long as my books are straight.

            That's just me. I doubt if my situation is even close to yours. Look hard at what you're doing, with a clear, unemotional head, and research everything. Go to some of the local Chamber of Commerce meetings. Listen to the advice they give. I've gotten some very good leads and help from the Chamber.
            I put it all back together better than before. There\'s lots of leftover parts.

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            • #7
              Re: Which one? Corp-S Corp-C or SP

              Gentlemen, thank you! At this point I am staying with a Sole Proprietership. I am supposed to be getting my Commercial Insurance policy put into place.

              I am hoping to start slow with this and see how things go rather than jumping in with both feet.

              Thanks again

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              • #8
                Re: Which one? Corp-S Corp-C or SP

                As previously stated, circumstances can vary but generally speaking it sounds like an LLC is the appropriate option for you. It provides for the protection of your personal assets like a corporation but does not double tax the profits that are distributed to you like a corporation. LLC's are fairly easy and inexpensive to form, at least in my neck of the woods. You can probably find the forms online (check with your Secy of State) or an office supply store. I'd recommend you do this ASAP. It's cheaper "insurance" than your business insurance!!!

                -O&B

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