Krista

I am just starting out and need to know which structure will benefit me best an S corporation or LLC
I'm in FL.

COCONUT

I am LLC

safaritazn

I am an S Corp. I am in NY. The S corp lets you deduct any loses on your perosnal return as well as gains.

John S. Soet

An LLC does too. There is very little difference, with the exception that the S Corp allows you to go public someday, which would interest very few salon owners. An LLC has he same flow through advantage, but less rigid record-keeping and meeting requirements. We ran an article on corporate structures in the September, 2005 Today's Image and <SHAMELESS PLUG> in the education track at the Las Vegas Expo in June, this will be one of the subjects covered, along with building corporate credit.

The following is an excerpt from the article, by Bill Lynott:

Anyone considering incorporation should be aware that doing business in that form will introduce complications that can be a nuisance to someone used to the simple life. Corporations have to follow some rigid rules, file separate tax returns of their own, maintain specified records, and, in theory, at least, hold directors' meetings.
To make life a little easier for the small entrepreneur, a special form of corporation known as Subchapter S was created. It allows small business owners to enjoy the advantages of incorporation without such penalties as double taxation, but there are some disadvantages to this form also.
"Another form of corporation, the Limited Liability Company (LLC), can be advantageous to small business owners under some circumstances," says Fulbright. "Typically, the costs and flexibility of the LLC business structure are helpful for smaller enterprises because:
• There are fewer requirements and restrictions placed on the business owners in how they pull money out of the business and how much they pull out as compensation (taxing authorities do not place the "reasonable" salary standard on LLC business owner compensation)
• The LLC company does not pay entity level taxes on profits (the owners pay taxes on their allocated share of profits and losses can offset owner's other income to the extent of active participation)
• The LLC provides greater protection from creditors and general lawsuits if run properly, compared to a general partnership and other entities
• The LLC is a great way to hold real estate because it allows for easier distribution of assets without having to consider dividends or other forms of compensation to the business owners (i.e. C-Corp and S-Corp have to consider salary levels, distribution methods, etc.)"
It is also important to remember that a single corporation is a single entity. Businesses owned by a single corporation share the responsibilities and liabilities of that single corporation. If, for example, you own a beauty salon and a tanning salon under the same corporation, and the beauty salon loses a lawsuit, the assets of the tanning salon can be used to satisfy the judgment.

COCONUT

nice post. sticky.

Neon Beach

Why is he sticky?

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Krista

Great Info thank you very much