sawmill business

[hackberry jake]

I am wanting to start a business and get a website. If nothing else, just for money on the side and still have a "real job". I registered my domain name already. I'm confused what type of business to start. s-corporation, llc, c-corporation, etc. I see some of the guys on here have llc's. Whats the difference? and which one is best for our trade? I sent an email to Jeff about building me a site(since I know nothing about that as well). I don't really want to think about hiring anybody or dealing with "employee complications". Thanks for any advice

[tcsmpsi]

It would be good if you had a good CPA that could sit with you and discover what is best for YOUR SPECIFIC situation.

Under all my circumstances, my preferred option has been sole proprietorships for over 40 yrs.

As my oldest daughter grew and expanded, who is a CPA, CFE and is senior partner of their firm, she came to ask me once of my decisions of sole proprietorships.   After much deliberations and consultations of others of the firm who are more 'on ground' with typical business (as opposed to being the fraud detector), she agreed.   :D

[Kansas]

We went S corporation for a couple of reasons. The first is the limited liability. The second is my business partner and I each own 50% of the shares. Simplifies things at tax time. The third is that while we both draw a salary, with the usual stuff taken out, we can declare dividends and not take out the 15% that a sole proprietership takes out on all income for SS and Medicare. But yes, talking to a good tax guy is a good idea.

[hackberry jake]

Thanks fellas

[jim blodgett]

A sole propriatorship is the simplest, most straight forward business structure to understand. 

An LLC is a little more complex but it isolates your personal assets from the assets of the LLC.  That's the reason we switched a few years ago, we got to the point where we had some assets we were depending on for our retirement.

When we set our LLC up we decided to be taxed like an S corp.  We could have just as easilly decided to be taxed as a sole propritorship.  Just know that you have to decide how to be taxed before you submit your LLC application and you can not change it later...sort of like deciding whether to deduct actual expenses or milage on any particular vehical.

When we first considered changing to LLC, after many years as a sole propriator I sought similar advice in another discussion forum and it used to make my head spin.  Took me a long time to gain any clarity on what was best for me and why.

Take your time to think it through.  Maybe the small business administration local to you could help you work through it, or direct you to someone who can.

It's hard work to figure this stuff out when you'd rather  go play outside, but it's important if you're serious about running a profitable business.

[Dave VH]

I've been a sole propietor for 14 years, lived exclusively self employed for 7, and it has worked well for me.  Step 1, get a good cpa.  they are worth their weight in gold.  they will save you far more than they will cost you, (in my experience).

[Kansas]

One point. We run the books on our S corporation on the accrual basis for accuracy. The tax return is on cash basis. You can um. play with the numbers a lot more on the cash basis. Its perfectly legal.