Thinking about startting my own company

[jdini76]

I am thinking about starting up my own LLC. This would be a side project for me. I would continue my day job. It would mainly be for miscellanious things like computer repair, video production etc. I am not expecting to make a lot of money as a result but was hoping that the tax benefits would make it worth my effort.

Does anyone have any experience with this? is it worth looking into further?

Thanks in advance.

 

[manlymatt83]

Started one in November. Never looked back. We were profitable from day one. And it keeps me busy! We even have a paid intern now

Go for it. Try it. You probably won't get huge, but you won't regret trying.

My .02

 

[pstylesss]

I was incorporated and just switched to an LLC. Tax benefits will be better than a corp. You can't regret if you don't try and I doubt you'll regret it.

 

[KeithP]

In California, last I checked, LLCs have a minimum yearly tax of $800. I don't know if your state is the same but you should check on that. If your side business is small a tax like that could be a deal breaker.

-Keith

 

[KLin]

Originally posted by: KeithP
In California, last I checked, LLCs have a minimum yearly tax of $800. I don't know if your state is the same but you should check on that. If your side business is small a tax like that could be a deal breaker.

-Keith

If you own your own business, and $800 in taxes really digs into your profits, I'd say it's time to close up shop.

 

[Descartes]

Originally posted by: KLin

Originally posted by: KeithP
In California, last I checked, LLCs have a minimum yearly tax of $800. I don't know if your state is the same but you should check on that. If your side business is small a tax like that could be a deal breaker.

-Keith

If you own your own business, and $800 in taxes really digs into your profits, I'd say it's time to close up shop.

He said it's a side business that he admits won't make much money. It's quite possible that the $800 in taxes would erode what little income he actually makes.

Personally, I wouldn't bother. Sure, it sounds great to be incorporated and everything, but with you already admitting that you'll make a meager income, I see no reason to take on the additional cost and responsibility. If you find yourself profitable, then you can certainly incorporate later.

 

[jdini76]

Originally posted by: KeithP
In California, last I checked, LLCs have a minimum yearly tax of $800. I don't know if your state is the same but you should check on that. If your side business is small a tax like that could be a deal breaker.

-Keith

Will expenses and deductions offset this minimum tax?

 

[jdini76]

Originally posted by: Descartes

Originally posted by: KLin

Originally posted by: KeithP
In California, last I checked, LLCs have a minimum yearly tax of $800. I don't know if your state is the same but you should check on that. If your side business is small a tax like that could be a deal breaker.

-Keith

If you own your own business, and $800 in taxes really digs into your profits, I'd say it's time to close up shop.

He said it's a side business that he admits won't make much money. It's quite possible that the $800 in taxes would erode what little income he actually makes.

Personally, I wouldn't bother. Sure, it sounds great to be incorporated and everything, but with you already admitting that you'll make a meager income, I see no reason to take on the additional cost and responsibility. If you find yourself profitable, then you can certainly incorporate later.

It would not be a Corporation. It would be an LLC. I am not sure that makes a difference when it comes to taxes and such, but I do know it is very different when it comes to liability if the company goes bankrupt.

 

[Descartes]

Originally posted by: jdini76

Originally posted by: Descartes

Originally posted by: KLin

Originally posted by: KeithP
In California, last I checked, LLCs have a minimum yearly tax of $800. I don't know if your state is the same but you should check on that. If your side business is small a tax like that could be a deal breaker.

-Keith

If you own your own business, and $800 in taxes really digs into your profits, I'd say it's time to close up shop.

He said it's a side business that he admits won't make much money. It's quite possible that the $800 in taxes would erode what little income he actually makes.

Personally, I wouldn't bother. Sure, it sounds great to be incorporated and everything, but with you already admitting that you'll make a meager income, I see no reason to take on the additional cost and responsibility. If you find yourself profitable, then you can certainly incorporate later.

It would not be a Corporation. It would be an LLC. I am not sure that makes a difference when it comes to taxes and such, but I do know it is very different when it comes to liability if the company goes bankrupt.

Substitute corporation for company then. I wasn't referring it into a formal entity sense.

 

[Descartes]

Originally posted by: jdini76

Originally posted by: KeithP
In California, last I checked, LLCs have a minimum yearly tax of $800. I don't know if your state is the same but you should check on that. If your side business is small a tax like that could be a deal breaker.

-Keith

Will expenses and deductions offset this minimum tax?

You can still have business expenses even if you're a sole-proprietorship. All your business income less expenses would simply be treated as personal income.

 

[compman25]

Originally posted by: mjuszczak
Started one in November. Never looked back. We were profitable from day one. And it keeps me busy! We even have a paid intern now

Go for it. Try it. You probably won't get huge, but you won't regret trying.

My .02

Why would you? ATOT makes all your business decisions for you.