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Entrepreneur here, on my fourth company. Lawyer and Accountant. Budget about $10k/yr Start as LLC then move to C-Corp as it grows and takes investment money.
by edoceo 10y ago
Entrepreneur here, on my fourth company.
Lawyer and Accountant. Budget about $10k/yr
Start as LLC then move to C-Corp as it grows and takes investment money. Accountant files quarterly federal and state taxes. My wages are taken out on W2.
When smaller the project is an LLC. Accountant still files paper but under $100k only annual. Just take the money out as distribution.
Tax implications from either route. Encourage you to find a trusted advisor on those matters
- floathub 10y agoJust to clarify one point; when a member of the LLC, you'll be taking "guaranteed payments" or allocations rather than W2 income (and paying quarterly estimated personal taxes out of that). You only do W2 income once it's a C-Corp. Not a lawyer or an accountant, so use salt with the paragraph above. (edited to clarify that post above is correct, but possibly ambiguous)
- intrasight 10y agoS-Corp also, since IRS will take a dim view of not paying payroll taxes. My accountant said use a rule of thumb of having at least 70% of pay be as W2.