LLC open chesina vallu vunara

[PhillyDotNetGuy]

7 hours ago, Be_happy said:

We don’t need to change our llc to s-corp. your company will stay as LLC. 
 

while filing for EIN number with irs, you will have an option to choose on how to consider your entity for paying taxes. Default is LLC. You can choose s-corp here. Even if you choose something wrong now, you can fix it when filing taxes for the year. It’s just an additional document to consider your LLC’s taxation as S-corp.

i am doing the same. 

BHayya, manam cash bayatiki ela tiyyali? Owners draw every month fine aa?

Or some other way? Need to run payroll mandatory?

[idibezwada]

8 hours ago, Be_happy said:

We don’t need to change our llc to s-corp. your company will stay as LLC. 
 

while filing for EIN number with irs, you will have an option to choose on how to consider your entity for paying taxes. Default is LLC. You can choose s-corp here. Even if you choose something wrong now, you can fix it when filing taxes for the year. It’s just an additional document to consider your LLC’s taxation as S-corp.

i am doing the same. 

what's the advantage for LLC over setting it up as S-Corp?

[perugu_vada]

Just now, idibezwada said:

what's the advantage for LLC over setting it up as S-Corp?

s-corp ki u can have urselves and others as employees .. and attain some tax benefits .. but what I read is .. if u are not making like 80-100k or so in a year .. it does not really matter .. i may be wrong though 

[veerigadu]

5 minutes ago, idibezwada said:

what's the advantage for LLC over setting it up as S-Corp?

It’s all about liability. For a single employee situation, it doesn’t matter. But I rather prefer LLC just to save my ass from litigation that may arise in future. 

[Sanjiv]

1 hour ago, PhillyDotNetGuy said:

BHayya, manam cash bayatiki ela tiyyali? Owners draw every month fine aa?

Or some other way? Need to run payroll mandatory?

You have to do payroll to pay taxes.

You can pay 60-70% of revenue in wages and draw the rest at the end of the year.

17 minutes ago, perugu_vada said:

s-corp ki u can have urselves and others as employees .. and attain some tax benefits .. but what I read is .. if u are not making like 80-100k or so in a year .. it does not really matter .. i may be wrong though 

 

20 minutes ago, idibezwada said:

what's the advantage for LLC over setting it up as S-Corp?

Having a company is to safeguard your personal assets from litigations and more

https://www.google.com/search?q=llc+vs+s+corp

As an s-corp, you can pay yourself 25% over salary as SEP-IRA (100% employer's share) each year and that earns interest/dividends (if invested) on unpaid taxes too.

[idibezwada]

2 minutes ago, Sanjiv said:

You have to do payroll to pay taxes.

You can pay 60-70% of revenue in wages and draw the rest at the end of the year.

 

Having a company is to safeguard your personal assets from litigations and more

https://www.google.com/search?q=llc+vs+s+corp

As an s-corp, you can pay yourself 25% over salary as SEP-IRA (100% employer's share) each year and that earns interest/dividends (if invested) on unpaid taxes too.

i get this. But my question is if I decided to setup a LLC i can just go with S-Corp instead right what's the advantage of setting it up LLC and to choose on how to consider your entity for paying taxes?

[Sanjiv]

12 minutes ago, idibezwada said:

i get this. But my question is if I decided to setup a LLC i can just go with S-Corp instead right what's the advantage of setting it up LLC and to choose on how to consider your entity for paying taxes?

S-corp is an optional election you make while applying EIN for your newly incorporated company.

S-corps pay less taxes. there is ton of info on which one suits your situation

https://www.google.com/search?q=llc+vs+corp

[PhillyDotNetGuy]

Form 8832

An LLC that is not automatically classified as a corporation and does not file Form 8832 will be classified, for federal tax purposes under the default rules.

The domestic default classification depends on whether there is one member or more than one member –

• An LLC that has one member will be classified as a “disregarded entity.” A disregarded entity is one that is disregarded as an entity separate from its owner.
• An entity that has more than one member will be classified as a partnership.

[PhillyDotNetGuy]

Just now, PhillyDotNetGuy said:

Form 8832

An LLC that is not automatically classified as a corporation and does not file Form 8832 will be classified, for federal tax purposes under the default rules.

The domestic default classification depends on whether there is one member or more than one member –

• An LLC that has one member will be classified as a “disregarded entity.” A disregarded entity is one that is disregarded as an entity separate from its owner.
• An entity that has more than one member will be classified as a partnership.

As per this, we don't need to file for S-corp if there is only 1 member. Federal tax return appudu we report this. Thats it I guess.

[wjameshps]

3 hours ago, Sanjiv said:

You have to do payroll to pay taxes.

You can pay 60-70% of revenue in wages and draw the rest at the end of the year.

 

Having a company is to safeguard your personal assets from litigations and more

https://www.google.com/search?q=llc+vs+s+corp

As an s-corp, you can pay yourself 25% over salary as SEP-IRA (100% employer's share) each year and that earns interest/dividends (if invested) on unpaid taxes too.

 

Bro , Okavela S-Corp open chesi , after few months job pothe , LLC em avthundi ? Close cheyyala lekapothe continue cheyyocha . Ikkada Car lease theeskovalani plan kuda chesthunna nenu on LLC . So checking 

[beerboy17]

21 minutes ago, wjameshps said:

 

Bro , Okavela S-Corp open chesi , after few months job pothe , LLC em avthundi ? Close cheyyala lekapothe continue cheyyocha . Ikkada Car lease theeskovalani plan kuda chesthunna nenu on LLC . So checking 

i heard IRS would look to see if the LLC is making any revenue for couple of years and then you have to shutdown if there is no revenue...

you cant have a LLC without revenue for long

[Sanjiv]

1 hour ago, beerboy17 said:

i heard IRS would look to see if the LLC is making any revenue for couple of years and then you have to shutdown if there is no revenue...

you cant have a LLC without revenue for long

Correct. You don't have to do monthly payroll or file payroll taxes but you have to file annual returns (you may have to file quarterly returns too - your payroll company files them).

After a couple of years, IRS may ask you to shut it down as it is now just a hobby with losses or without any revenue.

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a-hobby/L5NClTTtK

https://www.google.com/search?q=business+no+revenue+irs+shutdown