1 : I am an amateur artist and I was considering a web site.
Question is how do I limit any liability. create a LLC ?
Question is how do I limit any liability. create a LLC ?
2 : It is only myself and some art I will try to sell.
I expect to make very little if anything.
What are the minimum tax for this type of corp.
fees for state ,city, federal forms, etc.
3 : do I need to incorporate in state I live in or some other state
I will have a vacation home.
I expect to make very little if anything.
What are the minimum tax for this type of corp.
fees for state ,city, federal forms, etc.
3 : do I need to incorporate in state I live in or some other state
I will have a vacation home.
Answer :
1 : I assume it is a SMLLC; then, while single-member LLCs offer more liability protection than sole proprietorships, they do have more risk than multiple-member LLCs. In some cases, courts have held single-member LLC owners liable if their negligence has led to damages to others. Similarly, courts have also allowed creditors to go after personal assets in some cases where the business has a debt burden. In a February 2010 article, you need to know that single-member operatorsneed to maintain separate banking accounts and to treat the business as its own financial entity. You might even consider setting up a MMLLC and making a family member a small owner.
2 : Needless to say it depends on yur taxable income; if you are filing as a sole proprietor, partner, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1k or more when you file your return.however, you do not have to pay estimated tax for the current year if you had no tax liability for the prior year;you were a U.S. citizen or resident for the whole year;your prior tax year covered a 12 month period.Basically, as a sole owner, you need to file your return as long as the amount on Sch C line 29/ 31 is $400 or exceeds $400 and you also need to pay Self employment tax as long as the amount on Sch SE line 2/ 3 is $400 or exceeds $400.
3 : It is up to you and yur biz needs. Few companies need to incorporate, but there are many good reasons to do so. The most important immediate benefits from incorporation are the limited liability protection for owners, the ability to receive investment funds, and the flexibility to expand the business. Unlike most partnerships and all sole proprietorships, corporations offer limited liability for all owners. Should serious business problems occur, creditors cannot legally attack the personal assets of the owners. Therefore, even in the most dire business situations, corporation creditors cannot sue stockholders personally to endanger their homes, autos, bank accounts, or investments, to recover monies due. However, if the corporation has committed an illegality, such as fraud, the U.S. courts often pierce the corporate veil and allow creditors to sue owners personally, as a result of the deception.You need to analyze the nature of your business, your future plans, and the costs and responsibilities of incorporation before deciding on a structure for your company. Consult with a CPA/or an IRS EA in your local area if you are unsure of the ramifications , income, tax, cost, and liability -- of forming a corporation versus choosing another structure. For example, small businesses with multiple owners may enjoy benefits similar to a corporation by creating an LLC. With limited liability features, LLC owners are taxed as individuals, distributing company income to owners to be included in their personal tax returns -- and at personal tax rates. However, if you plan to grow and expand your business, a corporation might be the best option for the future.
2 : Needless to say it depends on yur taxable income; if you are filing as a sole proprietor, partner, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1k or more when you file your return.however, you do not have to pay estimated tax for the current year if you had no tax liability for the prior year;you were a U.S. citizen or resident for the whole year;your prior tax year covered a 12 month period.Basically, as a sole owner, you need to file your return as long as the amount on Sch C line 29/ 31 is $400 or exceeds $400 and you also need to pay Self employment tax as long as the amount on Sch SE line 2/ 3 is $400 or exceeds $400.
3 : It is up to you and yur biz needs. Few companies need to incorporate, but there are many good reasons to do so. The most important immediate benefits from incorporation are the limited liability protection for owners, the ability to receive investment funds, and the flexibility to expand the business. Unlike most partnerships and all sole proprietorships, corporations offer limited liability for all owners. Should serious business problems occur, creditors cannot legally attack the personal assets of the owners. Therefore, even in the most dire business situations, corporation creditors cannot sue stockholders personally to endanger their homes, autos, bank accounts, or investments, to recover monies due. However, if the corporation has committed an illegality, such as fraud, the U.S. courts often pierce the corporate veil and allow creditors to sue owners personally, as a result of the deception.You need to analyze the nature of your business, your future plans, and the costs and responsibilities of incorporation before deciding on a structure for your company. Consult with a CPA/or an IRS EA in your local area if you are unsure of the ramifications , income, tax, cost, and liability -- of forming a corporation versus choosing another structure. For example, small businesses with multiple owners may enjoy benefits similar to a corporation by creating an LLC. With limited liability features, LLC owners are taxed as individuals, distributing company income to owners to be included in their personal tax returns -- and at personal tax rates. However, if you plan to grow and expand your business, a corporation might be the best option for the future.
Visit Asktaxguru for Online tax help
No comments:
Post a Comment