S-Corp or LLC?

[Joeslucher]

I've decided to get a business license. After looking, it appears signing up as an S-Corp or LLC both avoid double taxation but other than that I don't know the difference. What should a freelance illustrator sign up as?

[mike yamada]

http://www.google.com/search?hl=en&q=s-corp+vs+llc

Also make sure to get a good accountant to handle your taxes. If possible use one that specializes in handling others in the same field.

[Joeslucher]

Thanks. The information on my state's website was really brief.

[Joeslucher]

Apparently I have to have a Registered Agent and to have one appointed it costs $159/year. As far as I could tell, the only thing they do, is tell me when to file taxes and annual reports. I can act as my own Registered Agent but does anyone know if this is a terrible idea. When you complete registration of your business do they not send information on when you need to submit various information?

[Jason Embury]

Joe, I'm set up as a self-proprieter, I've filed the add on forms to the Schedule C of my taxes the last few years with no problems, they actually SEND you payment tickets to pay quarterly taxes with too, and all you have to do is send them in by the due date. Helps to avoid paying too much when that tax deadline rolls around. I registered my company as nothing more than a self-proprietorship and got my business ID number (I think I spent around 70$ all told) depends on state and county costs though, it varys) I use Turbotax for my taxes as well. It's fairly straight forward and pretty simple actually. Biggest thing is to keep track of EVERYTHING, gas mileage on your car (when you're using it to go the bank, buy supplies etc...) supply costs, software purchases, reference materials, square footage of the space you use to work in (if you don't have a studio) computer accessories and supplies, lunches with clients if you do that sort of thing, EVERYTHING. You can write off so much stuff being self employed. It may help to just have an accountant handle the tax stuff though, but it shouldn't cost you more than $100 bucks to have yourself set up with a tax ID for your business and get up and running though. good luck man :)

[Jason Manley]

mb is an s corp...you should meet with a knowledgable acct to be sure which system you set up is right for your biz and goals. we went with a more traditional structure as we were based in texas and there werent a lot of accts/lawyers experienced with LLC's...but here in cali...they are common and proven. it will just be a different tax structure...that you should be most concerned about.


j