Announcement

Collapse
No announcement yet.

Should I register my business as LLC for taxes? I'm planning on starting with just my

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Should I register my business as LLC for taxes? I'm planning on starting with just my

    I'm planning on starting with just my self in a used wag n tails pet pro with hopes of buying a new one and adding a second mobile groomer.


    Sent from my iPhone using Tapatalk

  • #2
    You don't need to. It costs a lot if you have attorneys create your LLC. Cost me over 2000. Then yearly filings are $350. I would start as sole proprietor. LLC is to protect you individually if your business gets sued. Essentially, they can't come after you personally, like your assets if something happens. If you have a lot of personal assets like houses, stocks, etc, then I would do it.

    For taxes, you will need to file 2 return, one for LLC, one for you. A tax preparer will charge you about $500 for both every year. Basically, the LLC does it's write offs, then whatever is left that's not written off goes or carries onto your personal taxes. It could be beneficial if the LLC loses money, or you could get hit with a large tax bill if the LLC carries over thousands of dollars that can't be written down.

    Comment


    • #3
      Wow Tom..........my experience has been just the opposite of yours.......my LLC only cost $350 in 2008 and I've never had to pay another penny. Also my tax guy incorporates both my business and personal account and only does one filing. I think all business' should be LLC to protect your personal property from being sued due to a business lawsuit.

      Happy being a LLC

      Dolly's Barking Bubbles, LLC

      www.dollysbarkingbubbles.com

      Comment


      • #4
        I don't know what state you are in, but I created my LLC online with my state(FL) for $146.00. No attorney necessary for me. I did it to cover my family and personal property from being sued. I would highly recommend anyone who owns a business protect themselves in this sue happy world we live. Just my opinion.

        Comment


        • #5
          Those of you that have an llc do you get paid by that llc or is your money yours alone? I keep my business and personal accounts separate but on occasion the lines blur when I forget to pay for something separately where I'm also shopping for the family at Walmart or something.

          Comment


          • #6
            Originally posted by cockerlvr View Post
            Those of you that have an llc do you get paid by that llc or is your money yours alone? I keep my business and personal accounts separate but on occasion the lines blur when I forget to pay for something separately where I'm also shopping for the family at Walmart or something.
            Well.........I don't draw a salary, I live off my retirement and SS checks, all my grooming $$ goes into a retirement fund or back into the business. I do not deposit cash payments, but put it into a "jar" at home, then if I mistakenly pay for something that should have been paid by my business, I just dip into the jar and repay myself. This jar also pays for my tips that are written into a check.

            Happy loving my "jar"

            Dolly's Barking Bubbles, LLC

            www.dollysbarkingbubbles.com

            Comment


            • #7
              Originally posted by Dolly View Post
              Wow Tom..........my experience has been just the opposite of yours.......my LLC only cost $350 in 2008 and I've never had to pay another penny. Also my tax guy incorporates both my business and personal account and only does one filing. I think all business' should be LLC to protect your personal property from being sued due to a business lawsuit.

              Happy being a LLC

              Dolly's Barking Bubbles, LLC

              www.dollysbarkingbubbles.com
              There's no way it's 1 filing. The LLC has its own tax ID and files its own return. Also LLCs have an annual managing member filing due each year with the state. Mine is $125 fee, plus state licence of $175 due. Corporate tax returns are much more expensive to prepare and my CPA charges accordingly. Not every single business should be a LLC. Do research and decide. Sole proprietor is very popular with small businesses and less complex.

              Comment


              • #8
                I too have never heard of a LLC or Corp that doesn't pay an annual fee to the Secretary of State of their resident state or a minimum tax. And some states have a minimum tax, such as California the fee to Secretary is $25 year, but profit or loss, you pay $800 year minimum tax to State.

                O.P. I have heard CPA for many years that says you don't have to start a business off being a LLC or corp in most cases. The exception would be, do you personally have a good number of existing assets. Do you own a home with good equity in it? A very valuable coin collection, valuable collector cars, big bank accounts? If you don't there is not a lot for someone to go after. Plus those things shouldn't be in your name in the first place, but in something like a family trust or ?? see CPA. I last heard a CPA advise a new business owner to stay as sole proprietor until they had at least $100K in assets. REMEMBER, you still need INSURANCE, including professional liability!!! "malpractice." If the insurance is adequate it should cover you. Warning, only 2 companies write professional liability for groomers. So Farmers, State Farm and many others may insurance your business, but unless stated clearly, they don't offer malpractice and that is likely the biggest threat to assets.

                Comment


                • #9
                  Sorry I never wrote y'all back!! This was my first time posting and I couldn't find it after I posted it!! Thank you so much for all your feed back!! Im still not sure if I'm going to be LLC but I'm going to talk to a lawyer next week to have it all figured out!!


                  Sent from my iPhone using Tapatalk

                  Comment


                  • #10
                    I keep my business separate(Quick Books) and write checks to my personal account from my business account so all is above board and documented for the Internal Ripoff Service. I pay a state renewal fee($146.00)yearly. I have a good accountant and ran everything by her BEFORE I started my business so that all my ducks were in a row from the start. The accountant advised the LLC for the protection of my personal assets. I have liability insurance in the event of an accident to dog, or human customer.

                    Comment


                    • #11
                      I went to a free consultation with a non-profit that helps small businesses. It was at a local college. The person I spoke with said I could switch to LLC later, but for just starting out sole proprietor was what he recommended.

                      Comment


                      • #12
                        I'm switching to a S-corp to save on how much I pay in taxes


                        Sent from my iPhone using Tapatalk

                        Comment


                        • #13
                          Right you can always get started as sole proprietor and switch later. Agree that if you are person with lots of assets already, that is a different story.
                          Most questions regarding GroomerTALK are answered in the Board Help Talk Forum. Thanks for coming to our community a part of PetGroomer.com https://www.petgroomer.com.

                          Comment


                          • #14
                            Originally posted by IrishSetterTom View Post
                            There's no way it's 1 filing. The LLC has its own tax ID and files its own return. Also LLCs have an annual managing member filing due each year with the state. Mine is $125 fee, plus state licence of $175 due. Corporate tax returns are much more expensive to prepare and my CPA charges accordingly. Not every single business should be a LLC. Do research and decide. Sole proprietor is very popular with small businesses and less complex.
                            Tom has an S-corp in addition to being an LLC. An LLC does not automatically make you a corporation. Without the separate S-corp filing, an LLC in a fall through entity and taxes are a bit more simple. It's a lot less expensive to just do an LLC, but you can't pay yourself on the payroll and can't have payroll tax free dividends.

                            Comment


                            • #15
                              LLC people get K-1 for distributions I htink.

                              Comment

                              Working...
                              X