Comment Re:A few tips... (Score 3, Informative) 282
Some comments...
#1 - Subchapter S is a form you file with the IRS. This prevents the kind of double-taxation referred to by gillbates. Piece of cake (relatively) to avoid. True you can't seize the cash but you could decide to make yourself a low-interest loan right before the tax year ends. Corporations have more paperwork but that's to facilitate the large number of loopholes and tax advantages provided to corps vs. individuals.
#2 - No comments... why would you want 86%?
#3 A - depending on where you work employees may or may not be more difficult to get rid of. South Carolina is a 'right-to-work' state which means you can quit at any time for any reason with no notice but also allows your employer to terminate you at any time for any reason with no notice.
#3 B - Liability insurance is a nice thing to have and part of the cost of doing business. As a corporation, however, you have created an entirely separate legal entity which can be sued, etc, for damages but protects your personal assets (car, house, accounts) behind a corporate veil. The veil can be pierced but that's why you're paying a lawyer to make sure it's set up right.
Good Luck!
#1 - Subchapter S is a form you file with the IRS. This prevents the kind of double-taxation referred to by gillbates. Piece of cake (relatively) to avoid. True you can't seize the cash but you could decide to make yourself a low-interest loan right before the tax year ends. Corporations have more paperwork but that's to facilitate the large number of loopholes and tax advantages provided to corps vs. individuals.
#2 - No comments... why would you want 86%?
#3 A - depending on where you work employees may or may not be more difficult to get rid of. South Carolina is a 'right-to-work' state which means you can quit at any time for any reason with no notice but also allows your employer to terminate you at any time for any reason with no notice.
#3 B - Liability insurance is a nice thing to have and part of the cost of doing business. As a corporation, however, you have created an entirely separate legal entity which can be sued, etc, for damages but protects your personal assets (car, house, accounts) behind a corporate veil. The veil can be pierced but that's why you're paying a lawyer to make sure it's set up right.
Good Luck!
