UPHOLSTERY DISCUSSION BOARD
HOW TO UPHOLSTER FORUM

Rostov Upholstery Supplies Welcome, Guest. Please login or register.
January 18, 2018, 07:08:34 AM
How To Reupholster A Couch, Chair, Ottoman.
Recover Car And Boat Seats. DVDs
Foam Cutters $130+
1/2" and 3/8" crown staple guns- air and Maestri electric.
Upholstery Tools
Long Nose Staplers $124
Sunbrella Fabric     Complete line of Sunbrela fabrics. We also custom sew beautiful cushions from Sunbrella.
Custom Cushions     Custom cushions sewn at a high level of craftsmanship. Choose from fabrics and a range of quality foam.



: Check out CoachTrim's Advanced Leather Workshop and Basic Sewing Course on Suppliers Page
***Please click here www.facebook.com/upholster.upholstery and click "LIKE" for our UPHOLSTER Facebook business page (it will help me promote this free site)-Ken***



 
 EZ Foam Cutters with 240 volts and plugs for Australia, New Zealand and UK and EU.
SPECIAL 110V MODELS $130 (limited time!!) http://www.upholster.com/toolkits/Foam-cutter.html



+  My Community
|-+  The Business Of Upholstery
| |-+  The Business Of Upholstery
| | |-+  different corp types
« previous next »
: [1]
: different corp types  ( 1105 )
MinUph
YaBB God
*****

Karma: +1/-0
: 1938

Mainly furniture. Tarpon Springs Fl.


« : April 25, 2014, 08:52:44 PM »

I will be incorporating this year and have been reading about it. I wonder if any of you know the best type to use.

  I like the S corp tax advantages and see I could do a LLC and file for S corp tax status. Or I could just do the S corp thing on its own. What would be the benefits one over the other.

Paul
Minichillo's Upholstery
Website
kodydog
YaBB God
*****

Karma: +1/-0
: 2684


North Central Florida


« #1 : April 25, 2014, 09:28:31 PM »

Have you thought of Sole Proprietor.

As the name implies, as a sole proprietor, you are the sole owner of the business.  All you really have to do is hang out a shingle and register with the IRS, and your city and state, and you are all ready to go. Taxes are much easier. The biggest problem with this form of business is that your personal assets are liable if your business is sued. But after 25 years in business we never have been.

With an S-corporation, the corporate structure provides a shield for liability. There are a few disadvantages to S-corporations when compared to sole proprietorships.  If you have income earned by your business, the entire amount is taxable, whether or not your business has distributed the income to you. Another disadvantage to the S-corporations is the amount of record keeping is much greater. Lastly, the owners of an S-corporation are required to pay unemployment insurance taxes on their salary (if they get one), where the owner of a sole proprietor does not.

This all from The Bottom Line,
http://outright.com/blog/s-corporation-or-sole-proprietorship-which-business-entity-is-right-for-me/
« : April 25, 2014, 09:29:13 PM kodydog »

There cannot be a crisis next week. My schedule is already full.
http://northfloridachair.com/index.html
MinUph
YaBB God
*****

Karma: +1/-0
: 1938

Mainly furniture. Tarpon Springs Fl.


« #2 : April 26, 2014, 06:41:11 AM »

Ive run business all my life as a sole proprietor and know the positive aspects of it tax wise. But the advantages of a corporation really sounds good. I have more assets than I use to on the personal side and taxation can be manipulated nicely with a s corp. At times I have had large orders that really changed my tax brackets. This could be overcome with and S corp or at least lessened. I'm just not sure if I would be better off doing a LLC with Scorp tax status or a full S Corp.

Paul
Minichillo's Upholstery
Website
JuneC
YaBB God
*****

Karma: +0/-0
: 3996



« #3 : April 26, 2014, 08:20:45 AM »

In a "fat" year, only a C Corp can retain funds to even out income in the years that follow.  S Corp profits automatically roll into personal income of the shareholders.  About the only tax shelter there is the ability to take some of the profits as a distribution rather than payroll so you avoid payroll taxes on that portion, but the distribution is still taxed as capital gains in the year it's earned. 

All of the corp variants require quarterly and annual wage reporting so if you don't do your own accounting, paying for the additional service may make your tax advantage evaporate.  Every quarter it's a 940 to the feds and a UCT-6 to the state.  Then additional forms at the end of the year.  Depending on how much you pay yourself, payroll taxes have to be deposited monthly.  That bit is easily done online with an EFTS transfer from your bank. 

If I'm not mistaken, self-employment pay taxes are actually less than the 2 halves of payroll tax (SS and Medicare) from a corp.  It's been probably 10 years since I was self-employed so I don't actually remember, but I believe this to be true. 

June

"Horse sense is the thing a horse has which keeps it from betting on people."

     W. C. Fields
: [1]  
« previous next »
:  



Latex Mattress    Foam Order allows you to design your own latex mattress using layers of certified natural and organic components.
Organic Mattress     Foam Order makes a wonderful organic mattress using certified natural and organic components. Choose your own firmness.
SMF 2.0.14 | SMF © 2017, Simple Machines