jcolman wrote:
A couple mil in insurance may not be enough.
Colman's a baller.
Jim, depending in your income an S-Corp could be very advantageous for you... I'd suggest talking to your accountant about it. It saves us A LOT of money each year. Switching to S-Corp at the same time as LLC will also keep you from having to make another change down the road.
cineski wrote:
I place a limit of financial liability in my contract fine print making me liable for the final payment if anything happens. To be honest I don't know if this would hold up in court but the only thing that worries me more than a freak image loss incident is a freak injury caused by someone tripping over my gear or light stand.
That's not going to hold up if a 6 year old knocks over a light which falls on grandma, hurting or killing her.
Jim, depending in your income an S-Corp could be very advantageous for you... I'd suggest talking to your accountant about it. It saves us A LOT of money each year. Switching to S-Corp at the same time as LLC will also keep you from having to make another change down the road.
I asked my attorney about that but she still suggested that I stick with an LLC.
I know an S-Corp involves a bit more cost so it's not always the best decision. However if your business income exceeds what your salary needs are, then I can't see anyone recommending against it. Have you asked an accountant?
Tony Hoffer wrote:
I know an S-Corp involves a bit more cost so it's not always the best decision. However if your business income exceeds what your salary needs are, then I can't see anyone recommending against it. Have you asked an accountant?
To expand on what Tony said, S-Corps require periodic filings and corporate tax returns cost a lot more to prepare than Schedule C's on personal tax returns. Your accountant can monitor it for you as your income increases, then suggest when the S-Corp tax savings are greater than the extra fees and switch you over. You can even switch over late in the year and make it retroactive to January 1st. In most states it's easy to change from an LLC to a corporation by filing a form with the Secretary of State.
Tony Hoffer wrote:
I know an S-Corp involves a bit more cost so it's not always the best decision. However if your business income exceeds what your salary needs are, then I can't see anyone recommending against it. Have you asked an accountant?
I spend all of my business income. I'm spending nearly $10k in the next two weeks traveling around Europe.
Brian Virts wrote:
I switched to an LLC earlier this year, legalzoom was incredibly simple. I'm not sure why I had to buy an "registered agent subscription" though for $150 a year. They say it's nice to have? Anyone else get that?
apparently that's how they pay their layers throughout the year...
I've heard of plenty of people using legal zoom with good results, but my own experience was a little iffy.
I looked into it to get an idea of the cost. While answering the questions it asked me to select my county of residence from a drop down. I presume this was to help the program send the paper work to the right place. Virginia has independent cities as well as counties. I live in an independent city, which has it's own place to file paperwork, as well as it's own local taxes. Virginia Beach County was the closest I could get and by no where in the process did I have the option to identify myself as being in the independent city of Norfolk. I was too worried that legal zoom would auto-fill the forms that were for Virginia Beach County (which are completely different from what Norfolk wants). Ended up going to the city planning office and getting all the paper work in person. They told me that people come in all the time trying to fix mis-fillings to VA Beach due to Legal Zoom.
Obviously this won't effect a lot of people, but for those looking into it the system isn't perfect :-). If that matters to you, it might be worth checking with a local lawyer.
Just as a fyi I deal with multiple Lawyers and they all have LLC's for their lawfirms even with multiple partners. Less hassle tax wise with an LLC and also apparently their are tax loopholes as to multiple LLC's and being able to transfer profits around so you do not have to take a huge draw at the end of the year.
