Anyone set up an LLC?

[slayer202]

Yup, tax wise, S-Corp lets you keep a bit more. I forget the exact %, but dividends rock .

one thing I have been wondering about is, what is considered a fair base salary/wage to pay yourself? not sure is there is any sort of guideline

 

[Ns1]

one thing I have been wondering about is, what is considered a fair base salary/wage to pay yourself? not sure is there is any sort of guideline

market rate

eg 200k income a year drawing salary of 20k is not fair

200k income 100k salary is more reasonable. The number you eventually pick depends on your personal comfort level.

 

[slayer202]

market rate

eg 200k income a year drawing salary of 20k is not fair

200k income 100k salary is more reasonable. The number you eventually pick depends on your personal comfort level.

well lets say the owner is doing the same amount of work from the beginning, to the point where the company is making millions. no other choice than to scale the salary up i guess? I gotta read up more about it, i'm sure there are some resources out there

 

[Ns1]

well lets say the owner is doing the same amount of work from the beginning, to the point where the company is making millions. no other choice than to scale the salary up i guess? I gotta read up more about it, i'm sure there are some resources out there

when I worked at an accounting office, the key word was "reasonable"

someone making millions EVERY YEAR drawing a 50k salary would be unreasonable.

HOWEVER, if historically you've only made 25k every year and then one year you have absolutely stellar results, the salary becomes more a grey area

 

[AUMM]

I like that :thumbsup:

LLC has been the popular choice recently, but it seems like S-corp, at least for tax purposes, is the better option, and that link seems to reinforce that

you can create an LLC and file to be taxed as an S-corp

 

[ViviTheMage]

market rate

eg 200k income a year drawing salary of 20k is not fair

200k income 100k salary is more reasonable. The number you eventually pick depends on your personal comfort level.

kind of, my CPA said 30%-40% is actually fine.... 30k in salary, 70k in div's.

 

[Ns1]

kind of, my CPA said 30%-40% is actually fine.... 30k in salary, 70k in div's.

it really just boils down to your CPA and how conservative or liberal he is...

I worked for a very conservative CPA.

 

[TheVrolok]

Do you really have to chop up your posts in order to artificially inflate your post count?

He's mostly a troll, just take a peak at his posts in P&N.

 

[ViviTheMage]

it really just boils down to your CPA and how conservative or liberal he is...

I worked for a very conservative CPA.

Yup, my uncle does 250~ companies himself, and has been for 35~ years, so I gotta trust him, haha.

 

[slayer202]

seems fair enough. since you are getting a nice break on the leftover, I guess you can't complain too much about listing a "reasonable" base

 

[gophins72]

question, if you are filing for a llc or llp why not just file in deleware? seems a lot of people like to do that?

 

[slayer202]

question, if you are filing for a llc or llp why not just file in deleware? seems a lot of people like to do that?

I'm not sure if there is a good reason not to, unless there is a state who's laws you prefer

 

[Patranus]

question, if you are filing for a llc or llp why not just file in deleware? seems a lot of people like to do that?

If you don't live there then that opens up another can or worms in terms of forms and fees.

 

[SandEagle]

Thanks all, esp CPA, boomerang, and joesmoke for the info.

If i happen to become a millionaire from this endeavor I will reward each of u approximately 0.00% of the profits

 

[manlymatt83]

thinking of starting up my own tech company. what are the generic steps to get started? i want to avoid paying a lawyer for this. do i need an EIN before or after filing? what were your overall experience setting it up? hassle? easy?

I've done 3 in the past 3 years. Send me a PM with your phone # and I'll get you going.

 

[Mermaidman]

I thought an LLC doesn't really mean anything in terms of taxes. You're either taxed as an individual or as a type of corporation.

edit: Nevermind, CPA addressed this earlier in the thread.