How to start a one man bussiness

[midlifeflyer]

ummm.....yes there is. An LLC can apply for S corp status. Which is exactly what we have done.

I'd love to see =that= paperwork. An LLC is automatically treated as a partnership or sole proprietorship for tax purposes (which is how an S-corp is treated by choice). It's if you want an LLC to be treated like a C Corp that you "apply" for something. The only time you'd apply for an LLC to be treated like an S-corp is if, in the past you applied for it to be treated like a C-Corp.
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[VAPOR]

Just make yourself an LLC. Call it whatever you want and do all your business as "Flying Widget, LLC."

Actually...Dibbs on that name.

I agree, doing business as an LLC protects your personal assets as long as you do not engage in criminal activity. And you don't have to file separate corporate income taxes, the LLC profit/loss flows into your personal tax return.

 

[Flyingdutchman]

http:// www . clear -a nd -a- mill io n.com/

 

[psysicx]

Do a search under HMR in the corporate board he was asking the same question.

 

[Simon Says]

Q. What is black and brown and looks good on a lawyer?

A. A Dobermin Pincher



Q. Why don't lawyers have pockets in their suits?

A. They don't need pockets, their hands are always in your pockets.

 

[dhc8fo]

I'd love to see =that= paperwork. An LLC is automatically treated as a partnership or sole proprietorship for tax purposes (which is how an S-corp is treated by choice). It's if you want an LLC to be treated like a C Corp that you "apply" for something. The only time you'd apply for an LLC to be treated like an S-corp is if, in the past you applied for it to be treated like a C-Corp.
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The IRS has issued a ruling stating that a single member LLC owned by an individual may own stock in an S corporation without causing a termination of the S corporation's election.

 

[kaj837]

Pretty sure dhc8fo is correct, an LLC can have S corp status since that is just an IRS status that allows it to be taxed as a partnership. There are a lot of misconceptions on the part of the original poster as well as some of the responders. Enough that if you are really serious about this a tax attorney and a CPA, not a bookkeeper, would be critical necessities.

 

[midlifeflyer]

The IRS has issued a ruling stating that a single member LLC owned by an individual may own stock in an S corporation without causing a termination of the S corporation's election.

True. That's because unless a single-member LLC makes an election to be treated as a C-Corp, it is automatically taxed as an individual. (Just like a multi-member LLC is treated as a partnership if it doesn't make an election to be treated like a C-Corp) So there's no net taxation difference between a single member LLC and an individual.

As kaj837 pointed out, there are a lot of misconceptions about this. Even more than we're talking about. I'm being nit-picky because, unfortunately people usually take the wrong information from these kinds of discussions. If they at least see disagreement, they might at least think about seeing a professional before trying to apply it to their own situations.