Discussion:From SP to SMLLC?

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Revision as of 18:31, 6 June 2009
JR1 (Talk | contribs)
(Probably too muc)
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Dude7707 (Talk | contribs)
(why are you conc)
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Short answer...an LLC is an expensive to put one layer of protection up without changing a thing on the tax front. Insurance is advisable for real protection. An S corp only makes sense if you have enough profit so that a reasonable salary would be justifiably less enough to cover the costs of being a corp.}} Short answer...an LLC is an expensive to put one layer of protection up without changing a thing on the tax front. Insurance is advisable for real protection. An S corp only makes sense if you have enough profit so that a reasonable salary would be justifiably less enough to cover the costs of being a corp.}}
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 +{{ForumReplyPost|UserID=Dude7707|Date=6 June 2009|Text=why are you concerned about protection? Becasuse I'm an EA and have personal assets I don't want a potential bad client to sue me therefore want to have an entity that will not let them go after my personal assets and looking for the least expensive option. Another option is to get ERO insurance or business liability coverage as was discussed. }}

Revision as of 19:30, 6 June 2009

Discussion Forum Index --> Advanced Tax Questions --> From SP to SMLLC?
Discussion Forum Index --> Tax Questions --> From SP to SMLLC?

Dude7707 (talk|edits) said:

6 June 2009
Currently WA State SP with few clients and NO EE's, who loss a major client. Now looking for Corporate full-time Job...however feel it would be best in the interim to switch to LLC as Single Member or S-Corp for main purpose of protecting my personal assets?

Wanting to know my options:

1. Stay with SP and just get business Insurance 2. Stay with current status of SP and hope no one sues me.....Not a practical decision. 3. Switch to SMLLC however will still have to pay SE Tax course currently have losses so not an issue at this time until I am able to pickup more clients. 4. Switch to LLC as S-Corp.

Thanks for any comments/suggestions.

JR1 (talk|edits) said:

June 6, 2009
Probably too much to sort out here. Some of this is legal...why are you concerned about protection? Will the LLC or a corp in fact protect you? Many times, the real world answer is no, and if you're a professional of some sort, usually always, no.

Short answer...an LLC is an expensive to put one layer of protection up without changing a thing on the tax front. Insurance is advisable for real protection. An S corp only makes sense if you have enough profit so that a reasonable salary would be justifiably less enough to cover the costs of being a corp.

Dude7707 (talk|edits) said:

6 June 2009
why are you concerned about protection? Becasuse I'm an EA and have personal assets I don't want a potential bad client to sue me therefore want to have an entity that will not let them go after my personal assets and looking for the least expensive option. Another option is to get ERO insurance or business liability coverage as was discussed.
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