Should I  form a partnership, C corporation or S corporation ? Tax purpose?
455740
Way to many variables to give a satisfactory answer.  It will depend heavily on your specific circumstances and you should consult a lawyer or accountant, or both for a final answer.  In simple terms:\n\nPartnerships are just regular sole proprietorships that are run by more than one person.  Gains/losses, etc can be split in many different ways, but in the end the taxes are paid by the owners as individual income.\n\nC Corps are completely autonomous entities.  They make money, incur expenses, and pay taxes at a corporate rate after you net the two.  Capital is the money that is provided by the owners (stock for major corps).  Any return of capital is considered non taxable.  Most payments that an owner receives, though, will be in the form of wages.  This is an expense for the corporation but is taxable to the owner.\n\nS corps are similar to C corps except that the earnings are considered to be earned by the individual.  The corporation does not pay tax as all earnings flow through to the owner.  As a general rule this form of business is the most advantageous.
267626
Registering a company is not difficult at all.  First check with your state requirements, which is primarily name registration.  There are lots of companies that provide these services for you -www.mycorporation.com, but they usually charge a premium.  As an IT company, make sure you get your domain name secured, again, lots of companies out there to assist -www.godaddy.com, is my favorite.\nTaxes are based on your corporate structure, and vary greatly.  Make sure you go to www.irs.gov to research the differences, you can set yourself up as a C-corp (company pays its own taxes) S-Corp (shareholders pay their portion of taxes), LLC (Limited Liability) or Partnership, or you can stay simple by being a sole propreitor.  What all this determines is whether you will be filing an 1120 corporate tax return on March 15, or if all your taxes go on your personal tax return.  Now if you have employees, payroll taxes will have to be considered.  But this comes later.\nRunning a business to start is not complicated, but make sure you have invested in a good accounting product.  For brevity, Quickbooks is a pretty good bookkeeping tool, the training tutorial is pretty easy and the interface is user friendly.  Trademarking and patenting can be done but don't need to be done first.\nMost importantly, devise a strong business plan.  Although this helps investors, it helps you, the owner more.  It places all your thoughts down into concrete black and white.  It brings out your strengths and weakness, and determines if now is the right time to jump in.  Palo Alto has good software to assist with this.\nYou may also want to meet with a local SCORE representative to pick their brain.\nGood luck
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If you choose to stay a sole proprietorship, any and all liabilities go straight through to you personally.  Your home and all your assets can be seized if a judgment is obtained against you.  The same for being a general partner in a partnership.  A corporation is clumsy for a home-based business, is expensive to set up, and "piercing the corporate veil" is easy if anyone decides to sue you, UNLESS you've been super-meticulous about keeping records, holding shareholder meetings, director meetings and so forth and keeping written minutes (records) of those meetings.  It's easy with a personally owned corp., for someone suing you to argue that it's just a sham corp., the owner's alter-ego.  The corporate veil has thereby been pierced; you're worse off than if you'd never filed an Articles Of Incorporation.\n\nAn LLC is the way to go: unlike Corp., your income is not subject to double taxation.  But LEARN about these at Borders Books or Barnes & Noble first, before filing an L.L.C. "Articles Of Organization" with your state.  In my state, it costs $ 125. to do that, plus filing what's called a "Docketing Statement."  Learn from spending a few evenings in these bookstores (and perhaps investing in a couple of the better books, found in the Business And Money Management area of the store) what you need to know and how the finances of an L.L.C. will need to be looked-after.  You will probably be REQUIRED by your state, to have the words "Limited Liability Corporation" or "L.L.C." in your business's legal name.  That will necessitate a new business license, or at least a change of name on your existing license.  Do it right, and an L.L.C. will keep you safe in the event of a claim.  This (structure as an L.L.C.) is no substitute for general liability insurance; carry that as well.  ecommrc at yahoo dot com Jack Nelson Harrisburg, PA
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Congratulations on starting your own C corp. - now come the fun!\n\nI currently run four companies with one being a full C Corp and the others being LLC - I wanted to set up partnerships, however, my accountant/lawyer showed me where the state that I am in does not allow partnerships.\n\nOK - the very next thing you should do (even before transferring the vehicle) is to find a really good accountant for C Corps - this will be a LOT HARDER than it sounds.  As I have already noted, I found one that is both an accountant and a tax lawyer (even more rare)!  You want to find someone who really understands small C Corps and is willing to push to get all the tax benefits for you that are legal in today’s tax code.  Many accountants do not really understand the tax codes for small C Corps.  This one item can save you tens of thousands of dollars in very short order!\n\nMy advice here is to read the book Rich Dad Poor Dad (if you have not already) and use that as a basis to question accountants to see if they know how the tax codes work for small C corps.\n\nThe next thing to do is start setting up your advertising to be as much word of mouth as you can possible stand (good way to use that vehicle to mentioned to get around to network and meetings).  You want to plan as best as you can to ensure that you have as much cash flow as your company will need.  Depending on the type of business you are in, there could be any number of natural ups and downs that you will need to plan for.\n\nAs for the vehicle – again the accountant should be able to advise you best.  I have been told that the safest way to have the company own a vehicle is for the company to lease one.  This then become a full write off.  Yes, you will still need to keep track of mileage and/or other information as directed by your accountant.  The C Corp can also put money in a 401K or other retirement plan for you and your employees.  \n\nYou should set things up so that medical expenses are paid by the C Corp.  My wife retired with a good pension and medical benefits (although the company is cutting back on retiree benefits now), so the C Corp picks up all unpaid medical that is not covered by the insurance company.  Also under medical can be health club dues for medical reasons – thus one of my LLC’s has a fitness complex that is on it’s property that the C Corp then pays dues for the use of it.\n\nYou might also want to check you local area to find out if there are other small C Corp owners.  If so, you might want to ask them to join you in developing a master mind group where you can all share ideas on everything from building your organization to benefits from sharing resources (like accounting, purchasing office supplies, payroll services, etc.).\n\nThus you are right – there are a lot of tricks to the trade of learning how to run a small C Corp to benefit you and the company and also pay your legal (albeit small) amount to Uncle Sam – play like a big boy using their tools in a small company.\n\nGood Luck.\n\n\nAlso, you probably already know the following, but just in case, here is what I typically recommend to those thinking about starting out in business:\n\n\nAnytime you want to start any kind of business, there are several basics that you will need:\n\n* You should first sit down and think about what it is you want to do and then write out the scenario in detail!  This may sound tedious, but it will help you clarify what it is you are thinking about.  Also, when you talk to anyone about the business (mentor, bank, clients, prospective investor), you will have a clear vision to share with him or her.  You can check any number of books at your local library or the Internet for ideas on creating a business plan or goals list.\n\n* Is there anyone out there doing something like what you want to do already?  Can you research what it is that they do and maybe even talk with them about what they do?\n\n* Are there businesses out there that are doing some a
48316
I posted some links to a couple of articles about business structures & how to figure out which is best for your needs.\n\nFor the actual incorporating, contact your Secretary of State -- that link is also below.\n\nHope that helps! I wish you much success & happiness in all your endeavors!
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Very complete source for every & @ll legal procedures; i liked what i briefly saw. (fyi) you may go directly to State Dept to start filing your Limited Liability Partnership,[at least here in my jurisdiction]co. even w/out notarizing, but if you want to make it that way, perfect; You may also consider an Incorporation since the benefits are extent on behalf of both partties-you as a service/professional provider or licitator and clients/co's that contracts you; If you incorporate and your customers dissagree and start any litigation for insatisfaction against you as resident agent[official incorporator] your private assets  / properties, house, land, personal vehicles won't be in risk, only the assets under corporation will be the ones to respond. Plus you will have higher financial rate when incorporated since corporation acquires its own juridical personality-versus you as an individual in a  Limited Society-partnership.
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I am a Realtor and I am also a Corporation....Now sure why.....That is just what my accountant said would be best....That way if I get sued they can only go "personally" as deep as my Corporation and not my cut me through my personal (protects my family)....Talk to your accountant about it....IT is a nice protection to have.....
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If you're speaking of incorporating a business, a attorney can do it for you for a few hundred dollars; or, if you want to do it yourself, go to your state's Secretary of State's website.\n\nI recommend an attorney because they can also advise you which type of corporation you would want. There area few options: LLC, S corporation, etc. It's confusing if you're not familiar with the system.
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Either as long as you can trust your partner and you draw up contracts if entering into a partnership.  May also be worth considering setting up a limited company as you can do this with a small business, and at least then you will not be personally liable if things do not go according to plan with your business idea.  Good Luck!
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If you're going to be employed then there's no need to worry about setting up a limited company. You will be paid on commission, which to my understanding, will highly depend on how much you put in to your work, e.g how much sales you make etc.\nOn the flip side, if you're forming your own comapny, I'ld advise you to form an LLC or limited liablity company, which has a lot of advantages mainly, that you will not be held personally liable should your company be sued!
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Go to an accounting service and ask. You're going to have to get one anyway. He or she will set you up with a package.\nMine was $800 up-front to incorporate with her sevices and $300 a month after that. It was well worth it and saved my butt many times.
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If you are asking about the tax rate it wil be determined by how the specific entity is structred. S-Corps and C-Corps are taxed at the lower personal rate while LLC's are taxed at the higher corporate rate.
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You should file schdule C for your Ebay business. You first account your sales from ebay, then you account your business expenses: cost to acquire the items for sale, ebay fees, paypal fees, shipping fees, advertisement, auto expenses, home office deduction, telephone expenses, supplies etc. The difference of sales and expense is the net income which is subject both income tax and selfemployed tax. Schedule C is complicated, please seek a qualified tax professional.\n\nZhicheng Lai\nEnrolled Agent
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HOW TO REGISTER\nClick here to get to the Indiana Department of Revenue:\n\nhttp://www.in.gov/dor/business/register.html\n\nIt explains how to register your partnership.\n\n\nPARTNERSHIPS\nA partnership is simply a business owned by two or more people that hasn't filed papers to become a corporation or a limited liability company (LLC). No paperwork needs to be filed to form a partnership -- the arrangement begins as soon as you start a business with another person. As in a sole proprietorship, the partnership's owners pay taxes on their shares of the business income on their personal tax returns and they are each personally liable for the entire amount of any business debts and claims.\n\nCORPORATIONS\nMost people have heard that forming a corporation provides "limited liability" -- that is, it limits your personal liability for business debts. What you may not know is that there's more to creating and running a corporation than filing a few papers. You'll need to keep good records to handle the more complicated corporate tax return and, in order to retain your limited liability, you must follow corporate formalities involving decision making and record keeping. In short, you've got to be organized.\n\nLimited Personal Liability:\n\nOne of the main advantages of incorporating is that the owners' personal assets are protected from creditors of the corporation. For instance, if a court judgment is entered against your corporation saying that it owes a creditor $100,000, normally you can't be forced to use personal assets, such as your house, to pay the debt. Because only corporate assets need be used to pay business debts, you stand to lose only the money that you've invested in the corporation.
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Fill out a lot of forms.  A corporation is a legal entitiy and requires serious consideration.
832727
Do you have the papers to verify the existence of the LLC?  Because, for what you said, I think you should check Option h and you meet the requirements for Exception 1, you have a partnership interest.
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all depends on your company and your situation, I would have a good business law lawyer go threw this with you, not some morons on the net.\n\nmy sister is a lawyer and she has told me for one of my ideas an LLC would be bad for that kind of company.