S. Corp

S. Corp

Hi guys,

A few days ago, I got a call from The Tax Club after joining the Academy program. This is my first time that I think about having a business so I had alot to learn from that call.

Up to that point I had heard mostly of "Sole Protiertoship" and "LLC". The guy from Tax Club explained to me on being an "LLC/S. Corp". He said that with S.Corp I will have to pay less taxes on my business and have more deductions. He explained that without S.Corp , you could pay up to %50 in taxes to the IRS.

I don't know about you but I sure don't want to work hard only to share %50 with Uncle Sam. He said that it would cost about $1135 to sign up through them. I already have money invested with the coaching so I am not just going to give someone that kind of money.

I did some research in the forums but I only remember seeing "S. Corp" in one post on the "LLC" thread. How come no one is talking about this? I haven't even done one deal and I am mainly trying to start of with "assignment of contract" because I have no money.

Mostly I feel like starting of as a sole proprietor and then once my business takes of then sign up for S. Corp. At the same time , I don't want to pay so much in taxes with the little money I make in the first few years.

What do you guys know about S. Corp? Are most of you already established and is why I don't see this mentioned much? I need to know of if I should spend that kind of money even if I never done a deal yet. Thanks in advance.

Martin

__________________

MARTIN

FAILURE IS NOT AN OPTION!
I WILL NOT BE POOR ANYMORE!


S Corps

I think an S Corp is a great idea but pleasd do your research on sub chapter S corps. It is true they are great for taxes and you can put yous LLC under your corporate umbrella. But you dont need either to get started. Just concentrate on your first deal. Much success.

__________________

Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny

"FAILURE IS NOT AN OPTION"


Thanks Anita

I actually just did find some people getting that call from Tax Club on a tread below. I even saw a lady getting quoted a much bigger price to sign up then myself, I wonder why. I never knew there was so much research needed to be done just to pick out a business name/structure. I kind of understand now why so many people don't start a business even if they think they have a chance to succeed. I would like to maybe get at least one or two deals done before I call back the Tax Club. I am trying to stay positive and think that I can do this Real Estate thing but at the same time be prepared if it doesn't workout.

__________________

MARTIN

FAILURE IS NOT AN OPTION!
I WILL NOT BE POOR ANYMORE!


Its Not Hard

But wouldnt you want to make sure you started your business right so you would have a better chance of succeeding? Also I think you could find better pricing @ www.legalzoom.com.

__________________

Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny

"FAILURE IS NOT AN OPTION"


Martin

Hi Martin. We got that same call from The Tax Club after joining the Academy. We ended up going with them, because ALL OF THIS is completely foreign to us. We know nothing about starting up a business and all of the costs and tax breaks that come with it. What we were attracted to is that they will do everything for us, and even though we have had several setbacks (our first 2 names being accepted, then rejected by CA), they have done pretty much all of the paperwork, etc. for us. It's expensive, though. You could probably find cheaper accountants.

We decided to go S-Corp for some of the reasons listed above. I have to say, I have some peace of mind knowing that we are incorporated and don't have to worry about damaging our credit or being personally sued (worst case scenarios!). We are working on getting corporate credit, too, which will help in the future. (We have had NO LUCK getting corporate credit cards so far, because they want to know how much revenue our company generates! UUMMMMMMM, NONE YET???). We're still working on that!! Laughing out loud

__________________

Cool Go confidently in the direction of your dreams. -- Henry David Thoreau


Legal Zoom looks cheaper

I played around with Legal Zoom yesterday and there prices are far below Tax Club's . I am guessing that they do all the work themselves also but not sure. One question that I had regarding S. Corp is that it said something about shareholders obtaining your income/loses, something like that. Forgive me but I am not very knowledgeable when you start talking stocks and shareholders. Does anyone know what that could mean? I don't want to share my profits with no one , not even the IRS but thats inevitable.

__________________

MARTIN

FAILURE IS NOT AN OPTION!
I WILL NOT BE POOR ANYMORE!


Martini

S. Corp is a good way to go. I also received the call from the Tax Club. It was very useful information, but expensive when you're just starting out. Anita gave you a cheap alternative that works well. I don't know where you are located, but you can also try www.amerilawyer.com They're cheaper than legalzoom and they can be your resident agent as well. The only problem is they only serve certain states whereas legalzoom will set up your S-Corp in any state. Good luck.


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