10-11-2010, 10:31 AM | #1 (permalink) |
Join Date: Oct 8 2010 Location: Upstate NY
Posts: 8
Rep Power: 0 | S Corp or LLC Which is best for tanning salons? I am just not sure wich way to go, both protect you in the event of a law suit, but I am just not sure which is best for this particular business... any suggestions? Thanks! |
10-11-2010, 08:24 PM | #3 (permalink) |
Join Date: Oct 9 2010 Location: Minnesota
Posts: 33
Rep Power: 0 | Re: S Corp or LLC Which is best for tanning salons? I am looking at starting up in a month or so under LLC. The taxes are so much easier and being a small business I think that it is a good fit for me. But I agree with the post above it is something that you have to weigh your pros and cons. Good Luck! I have found this site to be quite helpful. Everyone is great about giving advice. |
10-16-2010, 08:45 AM | #4 (permalink) |
Join Date: Sep 17 2005 Location: Southeast
Posts: 374
Rep Power: 19 | Re: S Corp or LLC Which is best for tanning salons? It does not matter, they are both taxed the same way, as passive income to your personal tax return 1040. I think you are confused with S Corp, LLC, and C Corp. C Corp is a true corporation, that is taxed at the corporate income tax level, but gives you advantages of keeping some income for future capital expenses. Talk to an accountant and they will explain this to you. |
10-16-2010, 09:28 AM | #5 (permalink) |
Team TanTalk Join Date: Jul 13 2004 Location: Menomonie, Wi. Age: 82
Posts: 3,145
Rep Power: 22 | Re: S Corp or LLC Which is best for tanning salons? The tanning business has changed so much in the last few years, that looking at the way your business is structered isn't as important as it once was. My business has gotten so much smaller, that it's almost considered a hobby. If one has ample insurance, a sole proprietorship is still the way to go. I just file my schedule c, deduct my loss, against ordinary income and wait for my refund. Last edited by parrot head; 10-16-2010 at 09:30 AM. Reason: add |
10-16-2010, 11:28 AM | #6 (permalink) | |
Team TanTalk Join Date: Aug 27 2002 Location: East Coast Age: 56
Posts: 2,888
Rep Power: 22 | Re: S Corp or LLC Which is best for tanning salons? Quote:
Nope not exactly. There are differences. K1 is issued from a S Corp. If you are the sole owner of an LLC it is picked up as Business income on schedule C. Last edited by Robert K; 10-16-2010 at 11:31 AM. | |
10-24-2010, 09:15 AM | #7 (permalink) | |
Join Date: Sep 17 2005 Location: Southeast
Posts: 374
Rep Power: 19 | Re: S Corp or LLC Which is best for tanning salons? Quote:
No, you are wrong. A K1 is only for partnerships and is needed when filing where partners are involved. A K-1 is used by a Partnership or S-Corporation to report a partner/shareholder's distributed share of income. Partnerships and S-Corporations do not pay income tax. Instead, they file their corporate / partnership tax return as an informational return only. This return will distribute the net profit to the shareholders or partners based upon their percentage of stock or how the partnership agreement reads. For example, if you own 50% of ABC Corporation, an S-Corporation, and ABC Corporation shows a $100,000 profit in 2007, you will receive a K-1 for 50% of the net profit, so $50,000. You would have to claim this $50,000 of income on your personal tax return. Because the company does not pay income tax, the net profit is passed through to the owners who pay the income tax on their personal tax returns. An S-Corp sole member or LLC sole member is taxed exactly the same, it is a pass through recorded on the Schedule C | |
02-03-2011, 02:40 PM | #8 (permalink) | |
Join Date: Feb 3 2011 Location: New Bern
Posts: 3
Rep Power: 0 | Re: S Corp or LLC Which is best for tanning salons? Quote:
| |
02-03-2011, 02:58 PM | #9 (permalink) |
Guest Join Date: Apr 29 2001 Location: Stewartsville, NJ Age: 55
Posts: 3,121
Rep Power: 0 | Re: S Corp or LLC Which is best for tanning salons? LLC has a 20 year limit on business from what I understand. In other words, if you plan on being in business for 20 years or less, then an LLC is for you. It is not for businesses that are not planning on existing after a 20 year period. I guess we don't have to worry about that in this industry. |
Bookmarks |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
| |
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
s corp, c corp, llc | Nikkop123 | General Tanning Industry Discussions | 25 | 02-15-2007 09:55 AM |
Sun Corp just lost my business! | mikeytan | General Tanning Industry Discussions | 68 | 10-20-2005 01:17 PM |
How many DHA sprayers spray in tanning salons, hair salons, other | artist | Tanning Lotion Buzz | 0 | 05-09-2004 09:12 AM |
It is a good idea from tanning salons to give out info on the positive effects of sun tanning | Chippp | General Tanning Industry Discussions | 1 | 05-09-2002 09:42 AM |