~ archived since 2018 ~
~ archived since 2018 ~
| Upvotes | Title | Category | Author | Subreddit | Date (UTC) |
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| Upvotes | Comment on | Subreddit | Date (UTC) |
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| 2 | Older players (late 40s/50s & up), tell us what you would do differently if you could go back 20 years looking through the RP lens.Highly dependent upon the overall tax structure and the goals of the business. You will see some structures such as professional corps for business groups in certain professions and that corp may own another entity which holds real estate (such as the building the practice operates from) or other assets, and this could all be rolled into an umbrella corp under some scenarios. You also have bifurcated structures such as where a nonprofit has a business venture which is for profit and must be brok… | /r/TheRedPill | 08/01/15 08:16 AM |
| 3 | Older players (late 40s/50s & up), tell us what you would do differently if you could go back 20 years looking through the RP lens.Yes, LLC is check the box in all jurisdictions for federal tax purposes. Flow through simply allocates income to the individual, so besides the very marginal write-off flexibility, you will not save on taxes. I was not suggesting that flow-through is a bad thing, I was simply pointing out to the OP that you are not getting some huge tax break. Electing to be taxed as a C corp would be a bigger hit for a small business because you are then taxed twice, once at the C corp level at the C corp rate,… | /r/TheRedPill | 07/01/15 10:38 PM |
| 3 | Older players (late 40s/50s & up), tell us what you would do differently if you could go back 20 years looking through the RP lens.It is absolutely preposterous to suggest that a kid set up an S corp for their lawn mowing business. Part of running a successful business is learning to make smart choices and see the big picture. Further, as most new businesses fail, winding down an S Corp is much more complicated than dissolving an LLC. Any business that is going to benefit from an S structure is almost always going to involve a business with infrastructure, inventory, and employees (although employees are the smaller part of… | /r/TheRedPill | 07/01/15 10:22 PM |
| 2 | Older players (late 40s/50s & up), tell us what you would do differently if you could go back 20 years looking through the RP lens.They are giving you good advice. The main benefit of an LLC structure is limited liability. If you are running a business, it provides a good shield if something goes wrong. Keep in mind though, unless you have a significant track record and demonstrated receivables, loans to the LLC will almost always require a personal guarantee. Read those docs carefully because you often cannot simply wrap up the LLC and walk away from debt obligations. Regarding partnerships, those structures have limited u… | /r/TheRedPill | 07/01/15 09:14 PM |
| 2 | Older players (late 40s/50s & up), tell us what you would do differently if you could go back 20 years looking through the RP lens.This is incorrect if tax burden is the primary concern. An LLC will provide limited liability, but a single member LLC is what we call a "pass through" structure. Income flows straight through as if the individual owner earned the income themselves. You can try to get a little tricky with some of the write-offs, but the ones that won't earn you a flag barely get you back to 0. EDIT: If tax burden is not the paramount concern, once we look at all factors, an LLC is usually the recommendation for … | /r/TheRedPill | 07/01/15 09:04 PM |
| 2 | Older players (late 40s/50s & up), tell us what you would do differently if you could go back 20 years looking through the RP lens.The threshold income required to make an S Corp advantageous is far too high for a kid starting a business. The allocation of self employment tax requires income to be deemed a partial distribution and partial salary to provide a tax advantage, a breakdown which is negligible for most new businesses and actually often results in a higher tax burden. Converting to an S Corp once a business is up and running is a viable option, but you also have to factor in the costs of hiring counsel or a CPA to… | /r/TheRedPill | 07/01/15 09:02 PM |
| 2 | Older players (late 40s/50s & up), tell us what you would do differently if you could go back 20 years looking through the RP lens.Please, do tell. Would you suggest one incorporate as a C corp, S corp, or LLC? Single member or with a partner? Would love to hear your thoughts. | /r/TheRedPill | 07/01/15 07:23 AM |
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