How are you set up for taxes and liability?

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TheBeachHouse's picture
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06/24/2013
Corporation
0% (0 votes)
LLC
33% (7 votes)
Sub Chapter S
10% (2 votes)
Sole Proprieter
43% (9 votes)
LP
0% (0 votes)
Family Trust
0% (0 votes)
Other
14% (3 votes)
Total votes: 21

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Madeleine's picture
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09/29/2011

We have two: LLC and S-Corp. One owns the property, the other owns the biz. We are renters. So we need renters insurance as well as everything else.

We have to have 'corporate meetings' every year and file paperwork with the state. Nothing is cheap here.

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We are two LLCs - one owns the land and building (Kerivan Mountain Realty) and the other operates the B&B business (Bear Mountain Lodge LLC) and pays rent to the other LLC.  We have to file 3 separate returns - one for each LLC and then our personal which which the LLC income flows to.  This year our accountant is looking to see if we'll be better off checking the box and filing as an S Corp - it doesn't affect any of our legal setups as LLCs, it's apparently just a box on the tax return.  This is how two attorneys said we should setup the business during the construction process so we did.  I can't give the specifics as to why now 10 years later, but they both said it was best.

 

Highlands John's picture
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04/16/2010

Other: We're a self employed partnership

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OnTheShore's picture
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08/28/2011

So the next question might be, if you are an LLC, do you then request to be treated as an s-corp by the IRS?

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Arks's picture
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05/22/2010

At least in my state, LLC is EASY and CHEAP. I cannot think of any good reason to miss out on the limited liability protection this gives you.

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Arks wrote:

At least in my state, LLC is EASY and CHEAP. I cannot think of any good reason to miss out on the limited liability protection this gives you.

 

What is cheap to you?  In California and LLC is $800 per year.

Arks's picture
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scrambled_eggs wrote:

Arks wrote:

At least in my state, LLC is EASY and CHEAP. I cannot think of any good reason to miss out on the limited liability protection this gives you.

What is cheap to you?  In California and LLC is $800 per year.

That's why I said "in my state". Here it's a one-time $200 to register the LLC then $150 yearly to keep it active.

gillumhouse's picture
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scrambled_eggs wrote:

Arks wrote:

At least in my state, LLC is EASY and CHEAP. I cannot think of any good reason to miss out on the limited liability protection this gives you.

 

What is cheap to you?  In California and LLC is $800 per year.

True. A California woman bought a beautiful brick house here in my city for $150,000 (sight unseen - it was such a bargain) and could not believe how cheap it was. For here, at the time she bought it, that was out-of-this-world expensive here. It is a mansion and the location is awesome re view. BUT to get up to that house is interesting in good weather. I cannot imagine doing it in winter or rainy season. When crossing the river that house sits nestled in the trees on the hill - gorgeous!  

Adding - our Illinois money went a long way in West Virginia. It was a one-way move (we knew from the onset) because West Virginia money would not even be a spit in the bucket in Illinois.

Generic's picture
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02/24/2011

I just checked, in my neighbourhood the cheapest place listed is $150K and is a grand 438 square feet (so imagine 20 feet by 22 feet). No land, it's a condo. Or you could have 3 garage spaces. 

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gillumhouse's picture
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05/22/2008

Today I would go LLC. The thing about the sole prop is that I only need to do 1 tax form.

Innkeep's picture
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06/04/2008

gillumhouse wrote:

Today I would go LLC. The thing about the sole prop is that I only need to do 1 tax form.

I believe the S corp option allows you to put LLC in with your personal tax return.  Part of the return uses a taxpayer ID number for the LLC.

gillumhouse's picture
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05/22/2008

Good info for newbies. At this stage, for me, it no longer matters. My future is getting closer to roast & toast than anything else.

Joey Camb's picture
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04/02/2010

in the Uk its usually Partnership which is free or Limited company - Limited company means you have to nationally publish your accounts however it separates the business from the building which can be very important if you have say a young family or if say for example my sister is my silent partner if I went bust it would take all of her assets with me - if I was limited her assets would be safe

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Joey Camb's picture
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04/02/2010

partnership wasn't one of the options

OnTheShore's picture
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08/28/2011

I think LP stands for limited partnership

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