Forming an LLC

First off you don't pay self employment tax which can be ridiculous, another benefit, You can elect to be taxed as an s Corp and not be double taxed like you would in a c Corp.
 
Just so happens I formed an S Corp via Legal Zoom with their $99 option a few weeks ago. Only took an hour of my time to answer the questionnaire. Total cost $283 which included the $100 Oregon file fee. I guess I gotta go back to see what the remaining $84 was for.
Not an LLC like you asked but just sayin' I had a good experience with LZ.
 
First off you don't pay self employment tax which can be ridiculous, another benefit, You can elect to be taxed as an s Corp and not be double taxed like you would in a c Corp.

But either way, you are liable for a certain amount of taxes, eh? Maybe you sidestep the SE, but the corporation has to pay taxes doesn't it? As to s corp vs. c corp...I don't know the difference, and willingly confess to being ignorant of such matters. But your business is what it is, regardless of how it's classed. I am me, whether I'm wearing a Smith shirt, a Rutherford shirt, or a plain camo shirt. (Not trying to be argumentative, Willie, I just think it's a shame that one cannot just go out and work and make a living without bureaucracy sitting above them like a vulture, waiting to devour their hard-earned money.)
 
I have filed as sole-proprietor for the past 21 years. I'd have to do some digging to see if it would benefit me to go LLC or s corporation.
 
Atleast the way it is up here a 'company' or corporation is taxed at a lower rate than personal income tax. I think that's what Willie is on about. So you save money while lowering your personal exposure/liability somewhat.
 
I have filed as sole-proprietor for the past 21 years. I'd have to do some digging to see if it would benefit me to go LLC or s corporation.

21 years of dodging bullets to your personal assets.
I can't speak to the tax benefits. My accountant assures me that it works better, and protects my assets. She set up my S-corp for a couple hundred. A laywer was going to be $1000.
 
Because if something happens YOU are personally liable because your business IS YOU. Let's say something happened an accident that went into the big bucks or something. If you personally didn't have the money/coverage/ whatever; then they (The big bad Wolf) could go After your personal assets (home/personal bank acounts)etc.

Where as a llc separates you from your business. You are one entity And your business is is own separate entity.

Is basically just A big liability shield from business dealings whether that be accident, legal disputes, loan defaults, etc.
 
I understand the idea of it...just disagree with the principle. Suppose a doctor's negligence causes a death. Nothing can be done, because he prudently "hid" all his assets. I believe the flaw is in the system.
 
Everything could go away as a result of a POS person trying to scam. Not your skills, Scott! Your lack of legal protection for your assets. It would just be terrible to see everything go away.

Fu&^*ng employees could be the end of it all, or a tire blow out that causes a big crash. Maybe you don't have employee liability.
 
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You don't even need to be on a tree job to get your business sued and wiped off the map.
 
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