Any lawyers here...

[dogface]

Specifically if you specialize in franchises?

Also, any financial guys, I understand (somewhat) an LLC, and "S" Corp, but am having a difficult time prior to meeting with my accountant, on what is my best option tax and money making wise to set myself up if I get the franchise up and running.

Nothing like a little free advice to point me in the right direction, and or do my research ahead of such conversations...

dogface

 

[The Joker]

Just curious - what Franchise?

 

[dogface]

It is in the fitness arena..

 

[saint]

You will be able to save $ on self-employment tax through an S corp vs an LLC. That's one of the major advantages. In an LLC your entire salary is subject to medicare (2.9% i think), but as an S-corp you can take a reasonable salary for the profession, which would be subject to 2.9%, but you can then take distributions from the corporation that will be exempt from those taxes.

There are some other minor differences. The s-corp will cost you more $ to set up in the beginning and is more paperwork. I also believe you must pay taxes quarterly with an S-corp whereas with an LLC they can be paid yearly. I'm not positive on that one.

 

[dogface]

saint, yep you are correct with what you stated. Is there any other considerations, that tax is like 4.5% I believe, one I thought was not state taxed etc.

I don't think I would mind the quarterly filing, keeps records etc. clean, but I certainly am looking for the best vehicle to keep the most money in pocket etc.

Is LLC tied to personal finances etc., like a Sole Pro, or Partnership in certain cases? Chapter "S" keeps it as seperate entities as I understand it.

dogface

appreciate the response!

 

[saint]

It depends on what you read...some sources will say that an S corp gives more protection in the event of a lawsuit because it's the corp that gets sued....others will say that an LLC still provides the same protection. I'd check with one of the legal guys here or elsewhere on that.

You can tell I'm trying to make the same decisions- Best of luck

 

[Eddie Haskell]

Tax/legal advice from a molar mangler? What next, Dogs posting links to legitimate sources? Waiting room kinda empty doc? Told you it was a bad idea to open a practice in a state where the average person has 3 teeth.

Same thing happened to every guy I know who went into the shoe selling business in NC. Tragic. Very tragic, suicide. Actually the correct answer is not an LLC or an S but, rather an LRR (legal retainer required).

Eddie

 

[saint]

Tax/legal advice from a molar mangler? What next, Dogs posting links to legitimate sources? Waiting room kinda empty doc? Told you it was a bad idea to open a practice in a state where the average person has 3 teeth.

Same thing happened to every guy I know who went into the shoe selling business in NC. Tragic. Very tragic, suicide. Actually the correct answer is not an LLC or an S but, rather an LRR (legal retainer required).

Eddie

Nah Eddie, just have had my fill of working for a woman who makes decisions on rash emotions. If I knew I was getting that I would have apprenticed with you-

Moving to where we always should have been, Raleigh, to open a practice of my own-

 

[Eddie Haskell]

Nah Eddie, just have had my fill of working for a woman who makes decisions on rash emotions. If I knew I was getting that I would have apprenticed with you-

Moving to where we always should have been, Raleigh, to open a practice of my own-

I could have taught you much my son.

Eddie