Hmmmm. I started the LLC because a friend and I are starting a website, and he suggested I protect myself in case for any reason people sue me…. the website is still not done but I’ve been using the LLC and it’s bank account for my other independent contracting business…. . tavsiye.. uggg. going to see an accountant today.
James- Sounds like you have some serious misunderstandings about taxation. I’m sort of confused by your phrasing, as well. There’s no way I can give you an estimate about your tax situation. The profit from the S-Corp helps you because it’s profit…I’ll repeat my previous refrain: see a professional. Having said that, I think the S-Corp was a poor decision. I would have gone Sole Proprietorship. Profits of $20,000, self employment tax, etc don’t justify the added significant problems of the S-Corp filings and payroll taxes. All that to save on SE tax on 20 grand? Come on, read the article. Sole proprietorship is the way to go for almost all side jobs besides your “straight” job. People think LLCs offer some level of magical legal protection. That’s almost never the case. Individuals almost always have to cosign stuff personally, and the LLC-veil is pretty easy to penetrate. And, in CA, the LLC tax is a deal breaker. And how in the world is it costing you guys so much to start these businesses? $850? Sweet Jesus…I can start an S-Corp in LA for about $100. Also, did you actually file paperwork with the IRS to elect S-Corp or are you just saying you started a corporation? For everyone who’s not willing to read this article: 1) SEE A PROFESSIONAL (CPA, ATTY, ETC). Continue reading “I don’t really want to close it and reopen it again when the website is finally done”