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What is the legal formation of your business?

by TaxMaster
10 replies
Sole proprietor? LLC? Partnership? LLP? S Corp? C Corp?

Could make a substantial financial impact on your earnings if you are not filed as the most advantageous entity for your business. I'm curious to see what most IM'ers are filed as.
#business #formation #legal
  • Profile picture of the author MValmont
    Originally Posted by TaxMaster View Post

    Sole proprietor? LLC? Partnership? LLP? S Corp? C Corp?

    Could make a substantial financial impact on your earnings if you are not filed as the most advantageous entity for your business. I'm curious to see what most IM'ers are filed as.
    I'm in Canada so it is different.

    Are you a tax master for real? I actually need an accountant that knows about IM

    I went to the world's biggest accounting firm not so long ago and they WERE COMPLETELY LOST with my case as I travel all the time.
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  • Profile picture of the author agmccall
    S-corp...

    al
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  • Profile picture of the author DeePower
    S corp.

    Dee
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  • Profile picture of the author onegoodman
    LLC, I think if u just starting or your business carry some level of risk LLC is a good place to start.
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  • Profile picture of the author art72
    In all my offline businesses I registered them as S-corp for the tax breaks and personal protection, but as I am preparing to start a lead generation business (run mostly online) I was considering doing an L.L.C. as there is far less physical property to maintain.

    Would be interested to know the pro's and con's of Inc. - VS- L.L.C. when it comes to online businesses.
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    • Profile picture of the author TaxMaster
      Originally Posted by art72 View Post

      In all my offline businesses I registered them as S-corp for the tax breaks and personal protection, but as I am preparing to start a lead generation business (run mostly online) I was considering doing an L.L.C. as there is far less physical property to maintain.

      Would be interested to know the pro's and con's of Inc. - VS- L.L.C. when it comes to online businesses.
      With an LLC you are paying self employment tax on all of your income vs an S corp where you are only paying income on salaries (yourself included). But you must have capital producing factors to justify an S corp filing. So if you are 100% service based business you won't be able to justify any capital producing factors.
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  • Profile picture of the author PPG19
    we are an LLC
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  • Profile picture of the author ACandi
    Hi TaxMaster,

    In Trinidad and Tobago we have sole proprietor, partnership and limited liability company (Ltd) as business options and there are also options for non-profit organisations.

    Ltd has statutory requirements like filing annual returns with fees attached and could add expenses and added work that may require an attorney or accountant. You have to be generating enough revenue to afford those added expenses to take that route.

    I've a business name registered as a sole proprietor. I plan to register as a Ltd when my revenue stream can allow.

    LB.
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  • Profile picture of the author aizaku
    i should really get on the ball with this...

    I live outside the US and I dont know any of the procedures...

    Great thread, thanks,

    -Ike Paz
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  • Profile picture of the author William Waltham
    I initially started out as an S-Corp, but realized that as a sole proprietor, that type of registration was probably more than I needed. I've been strictly an LLC for the past few years, and haven't had any issues with it.
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