BlakMagic
01-19-2011, 11:16 PM
Hello,
Wanted to run by a 'what if' sort of scenario for a business. Specifically wondering about how to best structure a business for tax purposes.
So here is the scenario, if you need additional information - as I am sure I will leave something important out - just ask :)
Sales: 400k
Business Expenses: 155k
Debt Payment: 70k
'Net' = ~175k , without some possible depreciation etc expenses.
Its a service industry business, and it will either be a LLC or a Sole Proprietorship, was leaning towards LLC for legal reasons, one operating partner and an 'owner'.
Anyways just looking for some general ideas on what I would run into, tax advantages between the two.
Also, the net, is without any salary for myself - and I was wondering for tax purposes what would be best to actually claim a salary or just have it be profits of the LLC?
I know this is pretty general, so ask pertinent questions as needed!
Thank you :)
Wanted to run by a 'what if' sort of scenario for a business. Specifically wondering about how to best structure a business for tax purposes.
So here is the scenario, if you need additional information - as I am sure I will leave something important out - just ask :)
Sales: 400k
Business Expenses: 155k
Debt Payment: 70k
'Net' = ~175k , without some possible depreciation etc expenses.
Its a service industry business, and it will either be a LLC or a Sole Proprietorship, was leaning towards LLC for legal reasons, one operating partner and an 'owner'.
Anyways just looking for some general ideas on what I would run into, tax advantages between the two.
Also, the net, is without any salary for myself - and I was wondering for tax purposes what would be best to actually claim a salary or just have it be profits of the LLC?
I know this is pretty general, so ask pertinent questions as needed!
Thank you :)