Comments on: LLC or Limited Liability Company http://www.riseandgrind.com/2010/02/08/llc-or-limited-liability-company/ Break Bread & Let's Build! - R&G Wed, 08 Feb 2012 01:59:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: FreeMan http://www.riseandgrind.com/2010/02/08/llc-or-limited-liability-company/comment-page-1/#comment-841 FreeMan Tue, 09 Feb 2010 22:29:59 +0000 http://www.riseandgrind.com/?p=1950#comment-841 @Califormula - A LLC is one of the easiest ways to set up a business as strong as a Corporation. For tax purposes they treat you as a Sole Prop if it's one person and a partnership if it's 2 or more. This is the key difference as a corporation is taxed as a corporation. A pass through entity means the money goes directly to the members meaning the money is divided up according to the percentages agreed upon. IRS doesn't recognize it becuase the tax the individual. So the LLC will have a tax id but since it's not a corp it's treated the same way you would get taxed if it was a Sole Prop or a partnership. http://www.themoneyalert.com/Corp-Entity-Table.html http://www.irs.gov/businesses/small/article/0,,id=98277,00.html I use S.Corps as it's a sole prop with corporate protection. People get scared of the paperwork but it's really not anything to worry about besides writing down the moves you make. Example : 2/9/10 Opened up bank account with Chase 2/11/10 Closed bank account with Chase because they are devils! @OTM - S.corp to me is the best because LL means limited liability no matter what they say. See when you get sued in order to get money from the owner of the S. Corp you have to pierce the corporate veil. That means they have to prove I wasn't running my corporation properly and that's hard to do. Now LL means someone has to pay and that's why it's limited. With a S.Corp you won't lose your house and any money that is not kept in the corporation. They can't sue me for anything so if I fold up the corporation or the corporation has no money they are assed out. This is why everyone is a corporation not a LLC, LLP and especially not a Sole Prop. Business is not only about making money but also about protecting yourself and Corporations are the best at it. So why not follow the leader. I'll talk corporations later on this month so stay tuned! @Califormula – A LLC is one of the easiest ways to set up a business as strong as a Corporation. For tax purposes they treat you as a Sole Prop if it’s one person and a partnership if it’s 2 or more. This is the key difference as a corporation is taxed as a corporation. A pass through entity means the money goes directly to the members meaning the money is divided up according to the percentages agreed upon.

IRS doesn’t recognize it becuase the tax the individual. So the LLC will have a tax id but since it’s not a corp it’s treated the same way you would get taxed if it was a Sole Prop or a partnership.

http://www.themoneyalert.com/Corp-Entity-Table.html
http://www.irs.gov/businesses/small/article/0,,id=98277,00.html

I use S.Corps as it’s a sole prop with corporate protection. People get scared of the paperwork but it’s really not anything to worry about besides writing down the moves you make. Example : 2/9/10 Opened up bank account with Chase 2/11/10 Closed bank account with Chase because they are devils!

@OTM – S.corp to me is the best because LL means limited liability no matter what they say. See when you get sued in order to get money from the owner of the S. Corp you have to pierce the corporate veil. That means they have to prove I wasn’t running my corporation properly and that’s hard to do. Now LL means someone has to pay and that’s why it’s limited.

With a S.Corp you won’t lose your house and any money that is not kept in the corporation. They can’t sue me for anything so if I fold up the corporation or the corporation has no money they are assed out. This is why everyone is a corporation not a LLC, LLP and especially not a Sole Prop. Business is not only about making money but also about protecting yourself and Corporations are the best at it. So why not follow the leader.

I’ll talk corporations later on this month so stay tuned!

]]> By: On the move http://www.riseandgrind.com/2010/02/08/llc-or-limited-liability-company/comment-page-1/#comment-840 On the move Tue, 09 Feb 2010 17:09:21 +0000 http://www.riseandgrind.com/?p=1950#comment-840 Man when I miss some time here I miss a lot. Bottom line Freeman which structure to you think is best and why? Man when I miss some time here I miss a lot. Bottom line Freeman which structure to you think is best and why?

]]> By: Califormula http://www.riseandgrind.com/2010/02/08/llc-or-limited-liability-company/comment-page-1/#comment-839 Califormula Tue, 09 Feb 2010 15:52:42 +0000 http://www.riseandgrind.com/?p=1950#comment-839 This is the structure I want to use as it seems to be better than a corporation. I don't get what a pass through entity means can you explain? What do you mean a LLC is not recognized by the IRS don't they have their own Tax Id? Can you give me a link to a place where I can read some more? Do you have a LLC? This is the structure I want to use as it seems to be better than a corporation. I don’t get what a pass through entity means can you explain? What do you mean a LLC is not recognized by the IRS don’t they have their own Tax Id? Can you give me a link to a place where I can read some more? Do you have a LLC?

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